IRA, The other Retirement Savings Option

Personal Note from Clyrese

I hope you read and enjoyed last months blog I talked to you about my current situation with my 401(k).

  When I left that job and moved to another profession and opened a 401(k) account I changed my work status from full time to PRN (as needed) I am no longer able to contribute to my retirement plan. So I was going to begin looking into other retirement options.  What I found out is that IRAs are the best option for me.   A Roth IRA does not have any income restrictions except I must have earned income. Since I can't contribute to my current retirement plan, I think that is the best plan.

What is an IRA???

The IRA means Individual Retirement Account.  It is basically a savings account with big tax breaks making it an ideal to stack away cash for retirement.

There are many types of IRA accounts traditional, ROTH, SEP, and Simple.  Each account does different things but serve the same purpose, help you save the most money possible for retirement.  IRAs have eligibility restrictions based on income and employment status.

Traditional vs Roth IRA

Before I get into explaining the difference between a traditional IRA and a Roth IRA I want to explain what each one means.  A traditional IRA is:

Traditional IRAs requires you to pay taxes on the back end.  Meaning taxes are paid when you begin withdrawing money when you retire.  I don't know about you but if I am living on a fixed income I don't want to have to worry about paying taxes on the income I have set aside so I can live comfortably.

Anyone with a earned income can contribute in this particular IRA. In some cases you can avoid paying taxes on your traditional IRA by paying taxes on it when you begin putting money in it.  When doing this it is now a Roth IRA. 

Roth IRA do not require you to pay taxes when you begin withdrawing your money.  Unlike traditional IRAs there are income restrictions.  However, they are more flexible than the traditional IRA  and you can keep your money in your account as long as you want.  

SEP IRA

An SEP (Simplified Employee Pension) is a plan that provides business owners with a simplified method to contribute toward their employees’ retirement as well as their own retirement savings.  It is a traditional IRA and follows the same investment, distribution, and rollover rules.

Setting up an IRA is done through a participating employer. This type of IRA is not as common as it used to be in the 80's.

Simple IRA

Simple IRA plans can provide a significant source of income at retirement by allowing employers and employees to set aside money in retirement accounts. SIMPLE IRA plans do not have the start-up and operating costs of a conventional retirement plan.

What happens to your IRA after you die?

When you open your IRA account you will designate one or more beneficiaries to receive your IRA.  If you pass away before retirement your beneficiaries can either take out the money in a lump sum or receive your IRA as payments in installments over the course of a time.  

Your spouse can move the funds to your IRA over to his or her IRA without paying taxes.  

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How to save for retirement in your 20s, 30s, and 40s

Personal Note from Clyrese

My first full time job was at a warehouse.  My Dad was always telling my brother and I to start our

If were not investing in our 401(k) with our employer we might
as well be doing this.  It's free money we are throwing away.

retirement planning.  Open a 401(k) now so when you retire you will have money saved.  My brother and I had the same thought.  We have plenty of time to save.  Right now I need to make money and do what I
have to do.  I didn't start my 401(k) until I started working as a CNA at a retirement community.  I was 28 years old.  Now 10 years later I have less than $3,000 saved for my retirement.  

Two years ago I changed my work status.  I wanted to start putting towards my saving plan I am not ineligible.  I was thinking about my situation I thought, at 31, I am no where near prepared and will be ready for retirement in 35+ years.  Now, the money I have to sitting in my 401 (k) plan I have to figure out what I am going to do it.  

My current experience made me do some additional research and thinking.  I knew this month's blog will be about retirement planning. 

As I continue my research, talk with advisers I will update you on what discover!

Saving in your 20's

If any of you were like me saving when I was fresh out of high school, going to college, and taking care of a baby you may think you have plenty of time to save.  You want to use all the money you make for you and your child or children.  So you will wait to start investing in a retirement plan once your finances get better.  Let me tell you something, before you know it you will be 30 and wondering where in the world did time go. Children are bigger, eating more, your expenses have increased.  Now I wish I started saving for my retirement when I was 21.  With job matching up to 100% with up to 3% contribution do you know how much money I threw away? Over $1,766 over 4 years, that's not including the interest it would have accumulated over the years and increasing my contribution by 1% every year until I left.

In an article I was reading Most twenty-somethings are actually saving for retirement and it said 67% of young adults are saving for retirement according to Transamerica Center of Retirement studies.  The youngest surveyed a median of $16,000 compared to $45,000 for workers in their 30's and are saving more than 10% of their earnings in a 401(k) or similar.

I know you may have heard many negative things in the media about social security and how it may or may not be available when it is time for us to retire.  Why wait until it is almost that time to retire when and wonder where your next meal is coming from or how your going to purchase your medicine.

According to Katie Lobosko in her article What I learned about my 401(k): A 20-something's guide she had some very useful tips about saving in your 20's for retirement.  Below are some of her tips:

• Set up automatic increases until your contribution and the companies contributions add up to 15%.  You can start at the lowest and have it set up to increase by 1% every year.  This can be done online or over the phone.  If at anytime you want to remove the increases just go online.  
• Put some money in stocks and put some in bonds.  In your 20's you should be heavily invested in the stocks.  At this time in your life it is ok to be more aggressive than conservative.  If you are unsure of what your doing, DON'T WORRY, for a small fee companies like Myrille Lynch will work with you.
• Check with your investment company about annual fees.  They may charge a certain amount per $1,000 invested.
• Before you leave your job.  If you leave too soon, before the vesting date, you will loose your matching contribution.  Or, like myself, I left my job full time in 2014, after working there for more than 5 years, I was unable to participate in the 401(k) plan.  Now I have to figure out what I can do with the money that is just sitting.
• PAY ATTENTION THIS IS IMPORTANT  Don't take money out before the age of 59 1/2.  If you do you will be penalized at 10% plus paying regular income taxes on the entire amount.  Instead roll it over to an IRA  or 401(k) plan with your new employer.

Saving in your 30's

The same suggestions that are listed above can be applied to any age group.  It depends on your situations and what you are comfortable with.  But as we get older we find ourselves making many mistakes because of fear.  We sometime fear that we still can't afford to save right now because we have to pay this bill and that bill.  I felt the same way.  But I was talking to someone and we were discussing retirement and saving.  You know what she said to me.  When you are older and your retired you are on a steady income.  The way things are going with social security and the government, you just may not have one.  Now your stuck!  And your bills are still coming, but you don't have an income.  Needless to say that day I went straight to HR and got information about starting a 401(k).

I recently came across this an article that spoke directly to me because everything Nancy Anderson "4 Retirement Mistakes 30-somethings make and how they can avoid it in 2014" is exactly what I was thinking. Here are a list of some of the tips that caught my attention:

• When I was in my 20's and Dad was telling me to start my 401(k) plan I was thinking I had plenty of time to save for that.  I was in my early 20's.  Well Nancy Anderson said it perfectly, the number one mistake people in their 30's think they have plenty of time to save.  She suggest that when your younger save the max amount because as you get older your expenses increase.  Now that your in your 30's you may have a family and a house.  
• Before you begin retirement planning run a retirement calculations or meet with a certified financial planner to start planning for your retirement.
• Roth IRAs are more flexible and can allow you to invest for retirement and have flexibility from principal without large tax fees.  The investment is post tax.  When you go to your bank to open a IRA automatically transfer $50, $100 or $200 from your checking account to your IRA account.

Saving for Retirement in your 40's

Now your in your 40's and you may think it's too late to start saving.  Well I'm here to tell you it's never to late to save for your future.  The younger you are the easier it is yes.  However, you can start and you won't have a problem.  Here are some helpful tips to help you jump start your savings. 

• If your job offers a 401(k) plan and they match according your contribution.  Take advantage of it.  IT'S FREE MONEY!!!!  Make sure you contribute the full amount that will allow you to get 100% match.  If you company offers a 100% match your contribution up to a certain amount of your contribution up to 3% take it!  Investors recommend you save 20% of your earnings into a savings.  
• If you are unable to take save in a 401(k) plan there are other options like a Roth IRA.  Something is better than nothing.  Set up an automatic transfer of $50, $100, or $200 from your checking account to your IRA and increase contributions as you get raises.

So whether you are in your 20's 30's or 40's, even your 50's there is no such thing as your too old or too young to save.  No time is better than saving like NOW.  I hope these tips were helpful to you so you can begin saving for your retirement.  If you feel like you can't afford to save let's get together and talk.  You will link with one of our coaches at Financial Bondage Broken.  Your personal coach will talk to you about a budget program that will teach you how to save.

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About Financial Bondage Broken

Disciplining Your Desires

Personal Note from Clyrese

The look I made when I realized how much
Money I was wasting.  

Discipline was a difficult task for me when I first began being more conscience of my finances.  There are things I loooove to do like eat.  When I get a desire for something sweet or a slice of pizza, or I just don't feel like or have time to cook today my son and I would order take out.  Wawa was only walking distance away.  So that made it even harder.  I had the delivery spots in my area stored on my phone.  It was bad!  I was bad!  I'm surprised I don't weigh more than I do.  It was so bad that when I asked my son what he wanted for dinner he asked for his favorite, Chinese.  Even if I was planning to cook that night.  Bad huh?  The worse.  But I had to force myself to curve my appetite for take out and Krimpets.  It was killing my pockets.  

Every week for about six months my son and I had a routine.  It was as follow along with how much I was wasting...

Breakfast

Wawa Coffee                                                  $1.39 

Wawa Sizzler (breakfast sandwich)                  $2.39 x 2= 4.78

OJ Tropicana                                                   $1.09 

                                                                        $7.26

Lunch

Wawa Shortie (sandwich)                                 $4.39

Work Cafeteria Dining                                      $2.00 x 4= $8.00

                                                                        $12.39

Dinner

Take Out                                                          $25.00   

                                                                        $44.65 per week

                                                                        $178.60 per month!!!!!

Can you imagine that!!!  No wonder where my money was going.  Utterly ridiculous!!!  I was upset with myself when I calculated this money.  I demanded myself to practice discipline when it comes to food.  I did! I stopped drinking coffee and bought tea and went to bed earlier.  I prepared breakfast and lunch the night before instead of spending $13.00 per week at work or Wawa.   Guess what I lost 10 lbs.  I got two bonuses in one! Who can bet that kind of deal, 2 for 1!  

Now I didn't eliminate it all cold turkey!  Heck no!  I treated my son and I twice a month to something we like.  On week Wawa breakfast treat, another week, take out for dinner.  I stopped going to the EDR (Employee Dining Room) completely, because there was always something I like and had to get.  So instead I ate in my car or some other place in the facility where I wouldn't be disturbed.

Discipline

Discipline is a behavior that is judged by how well it follows a set of rules or orders.

When budgeting you are giving yourself a set of rules and standards that you are forced to follow.  The only person who is judging you is you.  So if you set a budget for yourself and and you go above that budget you are the one to blame.  For example.  You set a budget for your food bill, $200. (Can you tell I still like a good meal.)  You take your children along with you when you go shopping.  Every isle, each child ask for something that is not on your list you put yourself at risk of going over your budget.  Believe me I know, I did it myself.  So I started going shopping without my son, I went shopping when he was at school or with the sitter.  I was able to stay within my budget.  And saw myself saving.

How???

You may be wondering how can I do all these thing.  Well, here are some tips...

1.  Track your spending so you can see where your spending your money.

2.  Once you determined where your money is going deduct, reduce, and ELIMINATE expenses that are not needed.  Refer to our previous blog about Keeping Up with the Jones'.

3. Tell yourself no! I don't need that right now!!!  This is hard when you want something really bad.  What helped me was telling talking to myself.  I told myself, "Clyrese, now there is something that you need to take care of right now.  So can this extremely cute blouse wait another week?"  If the answer is yes, then wait that extra week or two.  

4. If you are still unclear about how to discipline yourself, or your just having a hard time call us, Financial Bondage Broken for a free consultation.  One of our coaches will sit down with you and have a one on one discussion on Finances, budgeting, and planning.

Financial Bondage Broken LLC 

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How to Avoid Cash Advances and Pay Day Loans

Personal Note from Clyrese

Before my husband and I got married in 2014 we went to Unclaimed Diamonds, in Philadelphia, PA, to purchase our rings.  Great company.  The associate was very helpful as we shopped around for our rings.  Because I had poor credit, he had good credit but low income we had to purchase our rings on credit through a bank out West.  The only requirements they had were a steady income and a checking account.  They also required to participate in automatic payments.  A blessing for us right?  Yes at that time.  We were dispirit.  We wanted nice rings and to get married soon.

We were doing very well for the first six months until our finances became tight.  We went through the proper channels.  I called them, communicated with them letting them know I would not have the funds for them to take the money out and extended my due date because we were going to mail the payment.  A few days after my payment I noticed the payment was withdrawn, while their payment was on the way.  Needless to say they overdrawn my bank account.  I immediately called them telling them not to withdraw the next payment.  I couldn't afford it with the additional fees they accumulated in my account plus our current monthly payments. They did it any way.  This type of problems continued for months until I was able to afford the $25 fee my bank charges to reject and activity from my account, three months later.

Now we are back on track in our bills.

Pro & Cons of Pay Day & Cash Advance Loans

Pros

1.  Relatively easy.

2.  Most of the time credit checks are not necessary.

3.  Approval is fast and funds are dispersed quickly.

4.  No collateral required.

     collateral- money used as security

5.  Often required less paperwork than conventional loans.

6.  You can find them either close to home or on the internet.

Cons

1.  They are expensive with an interest rate ranging from 300% to 500%.

2.  If not paid on time the loan can quickly lead to soaring debt and/or fees.

3.  Companies utilized unscrupulous, unethical and sometimes illegal means to collect debt.

4.  Does not supply short term budgeting problems and often only offer short- lived solutions.  Only long            term effects are stress and aggravations.

5.  They are illegal in some states.

6.  Contracts favor to the lender rather than the borrower.

7.  When collecting debt they resort to unscrupulous and unethical means.

Alternatives to Pay Day Loans

1.  Small loans from credit union or small loan company.

     Some banks offer small loans or cash advance on credit cards.  Cash advances may have higher interest rates.  Shop around for what's best.

2.  Communicate

     If you are having trouble making your next payment ask for more time.  May work with those based on good faith.  Be sure to ask if there are additional fees with this service. 

3.  Contact local credit counseling services

     Non-profit organizations offer credit counseling for free or with a low cost.  

4.  Find out if your bank offer overdraft protection

    If you use the funds in your account often you may make a mistake in your records and accrue return check fees per transaction in your account.  With the protection it could save you a lot of money.  The bank will pay your transaction for a fee.  However, you don't want to get in a habit of using this because NSA is can hurt you in the long run.  When you going to make a large purchase like a house, mortgagors frown upon NSA fees.  They stay on your bank statements for one year. 

5.  Make a realistic budget

     Include monthly and weekly expenditures and PLAN!  Try to avoid unnecessary purchases like a cup of coffee or buying lunch everyday.  It adds up.  A saving plan will help avoid emergencies where you may have to borrow from friends and family or use the famous saying, "Rob Peter to pay Paul."  If you do not know how to do that Financial Bondage Broken, LLC will coach and assist you on how to create a budget.  Right now we have a sale going one!  If you are reading this you are in luck!  For the 1st 50 customers you will receive a 50% OFF  on our Restore Program.  A $150 value for $75.  HOW AWESOME IS THAT!!!  Contact us TODAY and receive a free consultation.

Contact Clyrese Minor, Owner/CEO via email by clicking on the link below.  In your email include the following information:

Full Name

Phone Number

Email Address
&

The best time to call you.

financialbondagebroken@gmail.com

***PLEASE LEAVE A COMMENT WE WOULD LOVE TO HEAR YOU THOUGHTS AND DISCUSS YOUR EXPERIENCES WITH PAY DAY LOANS AND CASH ADVANCES***

Keeping Up with the Jones'

Personal Note from Clyrese

November 7, 2009 was the date I was hired at a retirement community as a certified nursing assistant (CNA) here in Wilmington, DE.  Two days shy of two years of being unemployed.  My first apartment was an apartment I hated.  It was a two bedroom apartment that was roach and mouse infested.  Crime was taking place literally around the corner, on my block and in my building every day and every night, all night.  Don't get me wrong, I was grateful for having a roof over my son and I head.  But it didn't feel like home.  Once I got my job I was excited! Excited I was on my way to moving out of the Rat Farm.  I felt I "needed" to move.  Within 1 year I finally moved.  But in the beginning it was hard financially.  

Before moving, within that year I didn't save anything.  I didn't even try.  I felt at that time it was more important to make sure my son was equipped with the best clothes and sneakers, had the best 7th birthday party at Chuckie Cheeses.  I wasn't even buying things for myself.  I was buying things for my son.  He didn't need all the things I was getting him.  I wanted to get them.  But convinced myself that he needed them.  Money was still hard to come by.

When I moved January 2011 I didn't have anything.  I didn't have any money.  I went to state agencies for funding to help me pay for my move in fees.  I didn't even have the money to pay my electric bill before I moved.   Needless to say I was late for the first full month I lived in my big, beautiful, and quiet two bedroom apartment.  

I confused needing to move with wanting to move during the time I moved.  Yes I needed to move into an enviroment that was more safe for my son and I. But God kept a hedge of protection around us.   There were things I needed to get in order before I did.  Like save.  I NEEDED to save instead of splurging.  I could have stayed in my first apartment for another year.  The rent was cheaper which would have made it easier to save.  By the time I was ready to move I would have a cushion.  Shoot, I could have been in a house I owned.

Keeping it real

Needs vs. Wants

What is the difference between a need and a want?

Needs are something a person mush have in order to survive or succeed.  Examples of needs are food, clothes, shelter.  You can't survive without food.  Going without eating for several days could cause sickness or worse.  You need clothes to keep you warm and protect you from the cold or hot weather.  Shelter will also protect you from inclement
weather.

Wants are things that a person desires but can live without.  While you need food, you don't need surf and turf (shrimp and steak).  You need something to satisfy your hunger.  You need clothes, yes.  But you don't need the newest Abercrombie dress or the latest Michael Kors hand bag.  We need shelter.  However, if you can't afford a $250,000 house, why try to buy one.

Its important to live within your financial means.  Over spending takes away from things that are important.  Learning and disaplining yourself to save for the things you want is a good way to satisfy your disires.

Another good option is layaway.  Layaway is my best friend when it comes to shopping.  Stores like Marshell's and TJ Max and Burlington Coat Factory allows you to layaway any of their items for up to 30 days.  You may have to put down a small deposit.  Some places as low as $10.  The only two down falls are you have to pick up you items within the 30 day slot or you loose your deposit.

Budgeting as a Single Parent

As a single parent we are already troubled with time and income.  Living within our means is crucial.  Once we have crossed the line of debt and financial stability is is jeopardy and it is hard to get back on track.  

A lot of times, as single parents we forget to get things we desire.  When we see something we go over board.  Go out and purchase the purse that cost too much.  Once it is bought it we feel guilty.  Because we feel like that money could have gone to another bill or something for the house. 

The following are suggestions on how to start a budget plan and begin implementing paying yourself first.  The illustrations below are clips from a spreadsheet I use with clients.  That helps them create a budget.

Step 1- Categorize all your expenses.

                 Example: 

Wk 1 column is where you input how much you owe on those bills.  The actual column is where you input how much you are going to pay on the corresponding bills.

Step 2- Input the values.

                 Example:

Step 3- After you have done steps two and three you can calculate how much you want to spend on miscellaneous spending such as entertainment, shopping, and vacations.  Don't forget to pay yourself first.

Once you begin budgeting you will notice that you will have to make changes and tweak your plan.  That is OK.  There is no budget plan that is perfect.  

Pay yourself first.

This concept is very important.  You don't want to leave yourself out of the little pleasures of life.  I pay myself $10 per pay.  Which is what I can afford on my current budget.  I use that money for myself only. For example, I have a butterscotch krimpet craving.  Its a bad one.  I have to sometimes fight myself from getting them.  :-)  I put in my budget once a month to treat myself to one krimpet.

There are times when I don't spend my $10 allowance.  That will happen to you.  You will find yourself saving when your not trying.  

If you need help with creating a personal budget contact us for a free consultation contact me, Clyrese Minor via email by clicking on the link below.  In your email include the following information:

Full Name

Phone Number

Email Address

The best time to call you.

financialbondagebroken@gmail.com

***PLEASE LEAVE A COMMENT WE WOULD LOVE TO HEAR YOU THOUGHTS AND DISCUSS YOUR EXPERIENCES WITH BUDGETING AS A SINGLE MOM***

Banking, Which is Best?

Personal Note from Clyrese

A Good Steward of Finances

1 Corinthians 4:2 "Moreover it is required in stewards, that a man be found faithful."

A good steward is faithful.  When a good steward is faithful over a few things God will make him or her ruler over many things.  Doesn't that sound beautiful?  Hey I can't take credit for that.  God said it in Matthew 25:21.

What is a steward.  Webster defines it as one who actively directs affairs.  In the Contemporary English Version of the Holy Bible they refer to stewards as managers on many different occasions.

My ultimate dream for my family and I are to be able to leave my son with a house and money when I pass away.  That is the end dream.  When I was going through my struggle and the way my finances were going there was no way I was going to accomplish my dream.  If I were to die tomorrow my 11 year old son, well at that time 9, would be a homeless orphan with no money.  So I had to get the ball in motion.  

I had to learn to be faithful in managing my little bit so I will be able to manage the big stuff.  

The Banking Experience

The banking experience can be a blessing or a course.  If you utilize it the way well.  Overdraft fees and charge offs are NEVER good.  Did you know that when you are going to purchase a
home and you have over draft fees on your statement within 12 month period it could prevent you from going to get a home loan.  How? Well, that is because it shows that you are not managing your money well and they don't want to risk missed payments or returned checks.  Think about it.  Would you?  Let's say a friend of yours loans another friend $200 expecting payment within a certain time.  That friend (lendee) doesn't pay the other friend (lender) back, or always later for their payments would you be willing to loan money to that friend.  Probably not right?  That is how banks feel about loaning money to people with poor credit and poor money management.  

Also, poor credit and poor banking habits can also prevent you from opening a checking account with most banks.  

Let's Get Real...

My experience with banking has not always been good, its still not as good as I want it to be.  I used to bank with WSFS Bank at a branch here in New Castle, DE.  It was, to me, a very good bank.  Hours of operations were convenient for me and busy life as a single mom.  Banking fees was practically non existent, unless I overdraft my account.  Which was often.  Look my fault.  Then one month, when I reached my breaking point in life I purposely overdrew my account.  I paid my cell phone bill, $300+, and my cable bill $100.  Removed direct deposit so that my entire check wouldn't  be gone so I could pay some of my rent and buy food.  And ran to a credit union and opened an account with them before the charge off appeared on my account.  Yes I did that!  I was COMPLETELY WRONG IN EVERY WAY! Of course I allowed the checks to bounce, account to close, and it went to collections.  I made payment arrangements with the WSFS Bank, and paid it off right away within 4 months.  But, to this day I cannot open a checking account with any bank bank because it takes 5 years for it to be removed from my credit report.  Its been 4 years.  I have one more year. Then I'm free.

I'm hear to tell you options and ways of how to avoid this experience.  Remember my blog a couple weeks ago How to Communicate with Bills I talked about balancing your check book.  That is the best way to stay up to date with your account balance.  The second best is, to me, checking it online through your electronic devices.

Why Credit Unions is a Good Option

1. Lower rates on loans according to the National Credit Union Administration (NCUA).  Banks are charging twice as much in interest on the same type of loans than credit unions.  National Credit Unions Administration states that as of June 28 the average rate is 2.85% on a 36– month car loan, while banks are charging 5.59%.

2. According to the NCUA, credit unions have higher rates on savings.  On ten (10) different types of accounts, such as checking accounts and 5-year certificates of deposits, are higher on average than at banks.

3. Better Credit Card Deals In June, NCUA said the average credit cared interest rates at banks are 12.85% for bank-issued credit cards.  While at credit unions the rates are 11.56%.

4. Credit unions are a little more flexible with lending than mega banks.  National banks require signature loans, unsecure loans that are guaranteed only by a signature.  Credit unions provide the services by just being a member.  To become a member a small deposit is required.

5. Credit unions are convenient. They have made banking very easy with online, phone, and in-person services.  Many of them belong to shared branch cooperative that allows them to conduct business anywhere in the world.  To find a participating credit union where ever you are there is a free app called CO-OP Shared Branch.

6. Credit unions also have lower banking fees.  Each credit union has different rates.  When you research and compare the fees you will find that they are lower than banks fees.

7. Credit unions are much smaller.  When ever you need to call about your account you will more likely talk to a live person, except after business hours.  I have been banking at the same branch for three years now and they are always pleasant.  I get the same treatment at other branches.

8. They are just as safe as national banks.  Credit unions are not members of the FDIC they have their own form of insurance.  You can read more about their insurance in this article from TheStreet.com. 

9. They are .  In the past, to join a credit union you had to be a affiliated with a particular company or organization.  Now-a-days most qualifications are you have to live or work in the same city, state, or county. 

Shopping with a Plan

Personal Note from Clyrese

Proverbs 31: 18 "She watches for bargains; her lights burn late into the night." (Contemporary English Version)

July 2014 is when I married the love of my life.  Before then, I was a single mother for 11 years. I moved out of my mom's house when I was 24.  While I lived with my mom I spent what I want, how I wanted, and paid bills when I wanted.  Did I save?  Of course I didn't.  Did I have a budget? Yeah right? What is a budget?  When I moved out, with my son, on my own, then lost my job, I didn't know how to financially survive.  Yes I made sure needs where met.  But I wasn't taking care of me.  I didn't make sure bought something that I wanted.  When I did I felt guilty.  I felt guilty because there are so many things we needed.

November 2009 I got a job. Then I made sure I got the things I wanted.  I found myself robbing Peter to pay Paul.  Have you ever heard of that saying?

May 2012 I gave my life back to God.  And made a conscience decision to serve Him.  Aug 2013 I asked God to show me how I handle my money better.  I was tired. He showed me how to pay my tithes (Malachi 3:8), catch up on my bills, budget my money, and save for short and long term.

Let's get real...

As a woman I love shoes, purses, and most importantly getting my hair and nails done bi-weekly.  I can't leave my son out, he has to have a hair cut bi-weekly too.  That is what I love!  I didn't want to do without and refused to.  But when the going got tough the money to do these things was scarce.  I was forced to do without.  That hurt!

One day in August I sat down and calculated the amount of money I made monthly from my job only and how much my expenses were monthly.  I made well over enough to pay my expenses, save, and buy what I wanted as well as what I needed.  I had to learn how to cut corners by looking at the weekly advertisements, clipping coupons, and signing up for email blasts so I could catch those savings.  It takes some time to do all these things.  But it is well worth it when was saving $100 or more per month.

Saving and Shopping

 If your like me, you love to cook.  I don't mean cooking the same things over and over again.  I mean really cooking.  Things like Caribbean and, recently, Asian food is my specialty.  My family and I love it.  Pinterest is literally my best friend. :-) When your just starting out buying the ingredients needed for the meals can be expensive.  Here are some tips to help  you begin saving on your grocery bill.  You can also apply some of these tips in other areas such as clothes, shoes, etc.



Step 1: Preparing Your List

What I started to do is create a menu every month (or week how ever you shop) and I would buy according to the menu.  I shop twice per month.  In the beginning of the month I purchase all my meats for the following month and the other things the at the end of the month.  Also, every week I buy the things we eat all the time (eggs, milk, bread, and bottled water)  I know... you may think bottled water.  That's not saving.  Hey, I won't drink water otherwise.  I'm weird like that. :-)

My calendar helps me create my very important shopping list.  Shopping lists are important because it gives you a guideline on what you have to buy.  It also helps you remember everything your house needs and what you need to prepare your fabulous meal.

Step 2: Where's the best sales

Every week the mail man clutters your mailbox with ads from the surrounding super markets.  You probably through them away because you shop at one store every week.  I did.  Well, instead of throwing them away look in them.  Compare their prices to the items you usual by at your favorite grocery story.  You will be amazed at how much you will save by shopping around.

I like to shop at two or three stores.  I have two favorite stores for my meat.  If I don't feel like going to one, i'll go to the other.  I have a favorite spot for my fruits and vegetables.  If someone has a better sale I'll deviate.  IN A HEART BEAT!

I love the idea that budgetmama.com had.  Grab your shopping list.  On your list write the price of a regular item you buy how much it would normally cost at your favorite grocery store.  When you get to the store write down how much it cost.  When you get home calculate everything.  You will see how much you save.

Before you begin your shopping don't take your visa/debit card with you.  Leave it home.  Instead stop by the bank or ATM machine and withdraw the exact amount of money you need.  This will prevent you from over spending.

Coupon Apps- My Second Bff

I have an email just for coupons.  This idea came from someone at church.  So when I am out or someone needs a coupon for something I can send it right to them, from my mobile device, and share the savings.  I also know when different stores are having sales.  For example, my son made honor roll this last marking period.  So to award him for his hard work my husband and I getting him a pair of sneakers anything he wants, no price limit.  I am keeping a close eye on Footaction and Foot Locker for their sales via email or Retail me Not.

Another app that is helpful is Groupon.  This app lets me know when companies and restaurants have sales.  This one is different from Retail Me Not because they only have a certain amount of coupons available.  So, once they are sold out, you can no longer able to use it.  With Groupon you can take advantage of things like vacation getaways, restaurants, Yoga, etc.

I love coupons.  It helps me buy the things I love and things that are helpful.

Let's Talk...

Share with us some other ways that you save money?  Do you know of any other helpful apps?

How to Communicate with your Bills

Personal Note from Clyrese

Proverbs 22:7 “Just as the rich rule the poor, so the borrower is servant to the lender.”

As struggled with poor money management I was a servant to the bill collectors.  I constantly owed them money and they wanted it NOW!  They didn't want it when I found a job.  They didn't want it after I moved to improve my housing.  They didn't care about any of that stuff.  They darn didn't care that I wasn't managing my money good.  All they cared about was when were they going to get their money.  So they called me what seemed like 100 times per day.  Filling my voice mailbox with messages after messages.  Yes they were a constant pain in the rear end.  

But I got clever.  At least I thought I did.  I learned how to block their phone calls and voice messages.  Fooled myself.  Dropped my credit score down to 514.  Which is considered VERY POOR. When I decided I wanted to be a home owner, and I saw that score my heart dropped.  I didn't know what to do.

Let's get real...

I was a slave to the bill collectors.  I don't mean a slave in the sense that I was picking cotton in a sweaty hot field.  I meant a mental slave.  I was constantly worrying about how I was going to pay the bills.  How was I going to get myself out of debt.  I was a slave to the property managers, the electric company, the cable company, and the cell phone company.  Who could file and take me to court on the 15th of any given month and can then put me out 30 days later.  My son and I would be homeless. MORE STRESS! I was a slave to the electric company, who could shut my electric off after a certain amount was accumulated.  MORE & MORE STRESS!!!  The type of slavery I am talking about is Financial Slavery.

Avoiding Disconnection by Communicating

Communication when your behind is extremely important.  It saved me from disconnections and and being charged re connection fees.  When your call them that puts you in control of the situation and it builds trust for you with the companies.  

The purpose in your call is to make a payment plan arrangements.  

Here are the steps to developing and effect line of communication between you and the bill collectors.

Step 1: Know when you will be able to make a payment

Grab your bill and your calendar.  You may be asking why do I need these.  These two tools are the most important tools you will have.  Why?  Well, because, when you call them you can give them an exact date when you will be able to make a payment and how much.

I made arrangements that circled around my pay date and my child support payment dates.  I made payment arrangements so many times and for so long I knew exactly what companies would allow me to make arrangements and what companies would not.  I had ideas of how long it would take for a credit card payment to clear in my account.

Step 2: Speak with the Billing Department

Now that you have your calendar and your bill now your ready to call and talk to the billing department.  At this point you will speak with a representative and begin to negotiate.

When you speak with the representative speak with confidence and assurance that they will grant your wish for an extension. However, you want to be humbled because you are asking them to extend a favor to you during your time of need.  Tell them you wish to make a payment arrangement, the exact date you wish to make that payment, along with how much.

Normally they will grant you at least two weeks, depending on the company.  What ever you do take the date that is the furthest out you can.  This is the most important rule KEEP THAT DATE!!!  If you don't you will be disconnected and you may or may not get another chance for an extension if you need it.

  

The Owner's Story

The beginning

I lost my job:

In October 2007 I was a young mom.  I was about 24 years old and my son was around 4.  I moved into my first apartment.  Although it wasn't what I really wanted, it was the best feeling and experience ever until two weeks later, November 10, I lost my job.  I was devastated!  I didn't know what I was going to do.  Except something I never wanted to do, apply for state assistance.  I was awarded $270 per month in cash, $300 per month in food stamps, and Purchase of care.  Purchase of care is Delaware's child care assistance.  They paid for day care while I looked for a job.  My son's father and I were constantly fighting with each other.  So the only help he wanted to give me was $250 per month. And majority of the time he skipped months. When he skipped months he doubled up when he paid.  But where your already a month behind it didn't seem like much help.

Two years of struggle:

The first eight months of unemployment were the most horrible months of my life.  Naturally every month of was behind in my rent.  I used the money from the state to pay bills like electric and cellphone.  I needed a phone so that employers could get in contact with me. 

Tax time I spent my money wisely.  I paid two months of my rent.   January I ran to the state service center in New Castle, DE  to pay my rent.  Current month was past due, and I paid the following month. So that covered February and March.  The surrounding months the rent was paid with help from several local, county and government agencies.  Until I was awarded child support June 2008.  Thank God I was blessed with enough to cover my rent.  

Once I started receiving child support the cash assistance stopped.  I was fine with that.  I have always been an independent person.  When I had to get government help I was embarrassed.  Loosing one assistance program to me felt like a step forward.  I step towards progress. However, I was grateful it was available when I needed it.  

I was still out of a job.  Working hard every day to find a job.  In October I applied for to a Certified Nursing Assistant (CNA) program.  As soon I was accepted into the program my car was repossessed.  I felt like that was the end.  I fell into a deep depression.  Thank God I had a mom and, at that time boyfriend, that cared and loved me and son unconditionally and helped me with my son.  For two weeks I wasn't able to get out of bed.  I wasn't eating, I wasn't cleaning my house, I wasn't talking to anyone.  I felt like every time I saw a door opening something got in the way of my financial drought.  I was hurting. 

Until one day something told me to get my butt out of the bed and pull it together.  This is not the end of the road.  You need to take care of yourself so you can properly take care of your child.  That is what I did.

By December 2008 I completed the CNA program and I passed the license exam.  By March 2009 I got my first job as a CNA/Caregiver.  Although it was a position where I worked a couple hours here and there and traveled to my clients homes to provide home care I was happy! It worked around my son's school schedule.  I worked as much as I could.  

November 2009 I got my first full time job at a retirement community.  I worked both jobs for three months trying catch up.  I worked so much I wore myself out.  Once my last client with my first job passed away.  I let it go.

The Middle

I wanted to move:

My first apartment wasn't a great apartment.  It wasn't even a nice apartment.  It was infested with roaches.  Yes roaches.  And my mom and boyfriend rigged it so that mice would stay away.  I HATED IT!!!  Once I purchased my car I was determined to move by next year.  But I had one problem.  When the date I planed  to move came around I hadn't saved one penny. But I forced the move anyway.  I relied on agencies and the state to help me pay my first and last month rent and I paid the security deposit.  Oh, and I was behind in my rent in my old apartment.   

Fell back into the same trend.  Poor money management.  But I wanted to move.

So, I moved into my new apartment.  Paying $200 more in my rent and barely paying my utility bills and other bills.  Every month I was behind.

I became fed up...

Eventually I got tired of being behind in my bills.  I made a decision to be more conscience about them.  So I started out with working on my credit.  

So I called a credit repair company to get help.  They were charging me a monthly rate of at least $300 per month.  I made the first payment, automatic withdraw, I was thinking "What the @#&! am I doing."  I don't have enough to pay my bills.  So I cancelled my membership.  Decided to start catching up on my house hold bills.  Then I will work on my credit.

Being behind in bills are stressful because every
 month I received disconnection notices.

Attempt one: The wrong way

I tried paying all my bills at one time, past due and current due.  I felt okay about it. But something didn't feel right.  One day I was hungry, and I looked in the refrigerator there wasn't much there.  I said to myself, "Oh shoot!  I didn't buy any food."  So I pinched pennies until my next pay check and bought some food.  

I did that for a month.

Attempt 2: The worst way

I paid for everything that I cellphone bill, cable, personal needs, then paid rent and electric bills.  Naturally that didn't work because I didn't have the money to pay the bills.

I tried this for about three months until I realized this wasn't the solution to my problem either.

Attempt 3: God's Way

After trying to do it my way twice and failed twice I became frustrated and tired.  So my final resort was asking God to help.  WOW!  Why didn't I think of this sooner.  Why because I was in a stage in my life where I thought I could do it on my own.  I was in a stage in my life where I thought I was in charge. I was in rebellion.  I wasn't following anything that had to do with spirituality.  Not because I didn't think I needed to, but because I just didn't want to.  Once I realized I couldn't do anything on my own.  The reason I even made it as far as I did was ONLY because of His Grace and His mercy.

What he did first was show me where I needed to start.  I needed to start with what was important, create a spread sheet where I would track my incoming and outgoing money, and begin to catch up on my bills.  Within six months I was caught up and ahead of my bills.  I was even able to save money and I didn't have to use child support to pay my bills.

Once I was able to do that, and be successful it was time to take it to the public and teach them and educate them on how to be stress and debt free.  That is the goal and mission of Financial Bondage Broken.