The Icelandic eruption did more than just give us new words to pronounce with gravity. Eyjafjallajokull, the fifth largest glacier for this island nation, has erupted five times since the ninth century. The strategic influence to environmental concerns, like melting polar ice caps, ocean currents, and wind current cycles over the mainland of Europe, help to keep Iceland and its temperamental mountains on everyone’s radar, now even more so than ever before.

The “tax season” eruption of April 14 brought the issue of disaster-ready contingency plans and accurate warning systems into sharp relief. The initial reaction of the EU was to ground all flights, since European regulations could not determine any safe level of volcanic ash. In the ensuing days, different reports developed about the ability of scientists to accurately test the safety of the air in ash particles per million, and whether it was really necessary for the airlines to stop flying altogether for such a long time. As of this report, London Heathrow International Airport tentatively resumed flights on Tuesday April 20, while France partially reopened service. Germany, Poland, Sweden, and Holland are still not fully operational.

Another strain on the already burgeoning economies of the European Union (in the wake of various economic meltdowns and bailouts) is new regulations and provisions needed to boost emergency response agencies, relieve stranded passengers, and accommodate airports connected to some of the most interdependent air-routes in the world. Countries as far away as Kenya can and have already felt the strain in the form of reduced import and export of perishable goods, as well as economic aid and supplies.

Quite obviously, airline industries set themselves at odds with international scientists and official aviation authorities. Airlines saw that they were in danger of losing millions of dollars (reportedly some $1.7 billion in losses from less than a week) in cancelled flights and grounded air shipments. Businesses that rely heavily on air deliveries of exotic fruits and flowers also took a hit.

The combined risks of volcanic ash include unbreathable air, greatly reduced visibility due to high-particulate matter, plane engine and other technological failures from blockages, increased heat and air pressure changing the surrounding environments temporarily, bird fatalities, and influencing freak weather systems.

In other related news, cutting-edge watchmaker Romain Jerome–known for the Titanic DNA and Moon Dust–has created a new design from volcanic ash of the newest geographic superstar itself. This watch will be a truly one-of-a-kind piece, with rare sourced materials and a hefty price tag. While Romain Jerome’s creation is not exactly a surge in the watch-making industry, it is a somewhat ironic reminder of the far-reaching effects of volcanic eruptions in this modern world.

Sources:

http://www.luxist.com/2010/04/22/romain-jerome-eyjafjallajokull-volcano-dna-watch

http://www.nytimes.com/2010/04/21/world/europe/21cloud.html

http://www.nytimes.com/2010/world/europe/21uncertain.html

http://scienceblogs.com/eruptions/2010/04/eyjafjallajokull_flight_cancellations.html

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Every business owner has heard the saying that “Cash is King”. This statement will always hold true because no company can survive without cash, as it is needed to meet the operating expenses (i.e. payroll, rent, insurance, utilities) and investments (Inventory, Buildings, Equipment) of every business.

Cash flow is the measure of inflows and outflows of cash in a business. Cash flow should be managed in order to prepare for and/or prevent cash flow shortages, in addition to identifying and taking advantage of opportunities. 

Business owners sometimes place more value on profitability as opposed to cash flow, which normally leads to many problems, because a company can post profits and still go out of business because of a lack of liquidity to meet their financial obligations.   

In order to avoid the above problem and countless others it is important that business owners become proactive in measuring, analyzing, controlling, and projecting their cash flows levels. Below are a few pointers to assist you in managing your cash flow.

Collect Your Account Receivables Faster

: The goal in managing account receivables is to convert them into cash as quickly as possible. The faster you turn your receivables into cash the better, because it gives you the necessary liquidity to meet your financial obligations. Businesses can improve their account receivable collection rate by:

* Billing customers as soon as a sale is made rather then waiting several weeks.

* Checking the financial condition of a new customer prior to extending credit to them. Dunns and Bradstreet (D&B) offers credit information on businesses of all sizes.

* Measuring receivables on a current, 30-, 60, 90 day aging, and analyzing it regularly to uncover internal or external problems and to identity late payers and quantities.

* Creating a tight credit policy and enforcing it amongst your customers. On your invoices specify when payments are due and the penalties if payments are not received on a timely basis.

Stretch Your Expenses: The goal here is to hold on to your cash as long as possible, primarily by paying your bills as slowly as possible. If you are allowed 30 days to pay your company’s electric bill, pay it on the 30^th day as opposed to the 20^th day. During that 10 day interim, that cash can be collecting interest in an investment account or can be used for a more pressing issue that may arise within that 10 day interim.

Obtain A Line Of Credit: Obtaining a line of credit can help to meet your working capital needs and take care of emergencies that may arise in your business.

Conservatively Invest Excess Cash: If you have extra cash on your balance sheet, it should not be sitting there ideally without collecting any interest. Any excess cash should be in some form of an interest bearing account. Check with your local bank to see what cash management products they offer, such as an overnight sweep account, where a company’s excess cash is disbursed from their operating accounts at the end of each work day and invested in securities (i.e. Treasuries) over night and then retuned to their account the next day.

Purchase What You Need: Purchasing inventory beyond what is needed, is a common habit amongst many businesses, because many want to take advantage of discounts that are offered and also have the assurance that their shevles are adequately supplied, however, purchasing inventory that will only sit on your shelves longer then the average inventory turn rate will only increase your carrying cost of that inventory. It is very important to keep tight controls on inventory and purchase only what you need.

The above cash flow strategies should get you started in creating an efficient cash flow management system for your business. If you are seeking additional assistance in creating a cash flow management strategy please contact one of Optimum Capital Management business advisors.    

Written By: Lloyd Cambridge, CFO of Optimum Capital Management, LLC

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Did you know that “over 61% of Americans think they won’t have enough money to live comfortably in retirement and that 80% of Americans expect to have to work part-time in their retirement” [1] just to cover basic expenses? Given this scenario, retirement doesn’t look like the ideal image of spending the day with the grandchildren or leisurely vacationing in Hawaii that we all envision as the “dream retirement”.  In fact it sounds rather depressing that we may never fully reap the harvest of our hard work if we fail to plan for our financial futures.

Likewise, while some recognize the need for retirement planning, they often mistakenly exclude annuities as a viable option simply because of limited exposure to the various annuity options and features.  This article will educate you on how annuities work and where they can assist you in protecting your retirement planning objectives, especially in today’s economy.

What is an Annuity?

Annuities are insurance products allowing individuals, or annuitants, to contribute premiums guaranteeing income payments over a specified period of time.  There is a saying that “you can’t outlive an annuity” which holds true as annuity income payments are typically guaranteed for the rest of the annuitant’s life. 

Annuities can be either qualified or non-qualified.  Qualified annuities are typically used for tax-deferred retirement savings vehicles such as IRAs, 403bs, etc.  Non-qualified annuities are funded with after-tax funds and in most cases income payments can be considered tax-free income. 

Annuities can also be categorized as immediate or deferred according to when annuitization, or annuity income payout, occurs.  Immediate annuities are designed for individuals who begin annuity income payments immediately (or shortly after) opening the policy.  These annuities are also known as Single Premium Immediate Annuities or SPIAs.  Deferred annuities in contrast, allow individuals to contribute premiums over an extended period of time and elect to withdraw income from the annuity at a later date.  Most deferred annuity contracts also have surrender periods ranging from 5 to 10 years (depending on the annuity type) during which the annuitant cannot take any early withdrawals without paying a penalty (also known as a surrender charge).  There are additional penalties if annuity withdrawals occur before the annuitant turns 59 ½ – remember, annuities are designed to be retirement vehicles, not emergency cash accounts.

Why Should You Consider Annuities?

• Lifetime income
• Protection against outliving your assets
• Qualified annuities can grow tax-deferred
• Ideal for individuals seeking a specified income amount during retirement years
• Can be distribution method for individuals receiving unexpected lump-sum income (e.g., inheritance, lottery earnings, personal injury settlements, etc.)

What Annuity Categories are Available?

Annuities can have several variations but they are typically categorized by product type, namely fixed, equity indexed and variable annuities. 

Are you confident that upon retirement you will have enough income to not only cover basic living expenses, but also for the pleasures of life?  If not, call one of our qualified Optimum representatives at 877-75-TEACH to evaluate if annuities should be a part of your retirement planning.  Let Optimum assist you in sowing financial seeds today for a bountiful harvest during your retirement years.

NOTE: Neither Optimum Capital Management nor its Financial Advisors provide individual tax preparation or legal advice. Clients should review any planned financial transactions that may have tax implications with their own tax and legal advisors in addition to the consulting provided by Optimum of such matters.

[1] Roper ASW, 2003 and AARP Study, 2003

Optimum Capital Management, LLC, a fee-only advisor, is committed to providing highly-skilled, full-service financial planning in the most cost efficient means for our clients.  As the financial planning industry has shifted to a more product driven strategy, Optimum remains steadfast of purpose by continuing to focus on a service-oriented strategy. www.optimumcapitalmanagement.com

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Jab another high interest rate and here comes an upper cut it’s a call from another creditor.  Just when you think its over, your hit with a left hook, “Sorry we’ll need a deposit before activating that account”.  Dealing with credit card debt can feel like a knock down drag out fistfight. With over 56 million¹ Americans admitting to not paying their bills on time and credit card charge offs reaching 9%² an end to the credit crises is nowhere in site.  Banks are reducing lines of credit, no credit, bad credit offers are a thing of the past and lenders have little sympathy for subpar applicants.  To knock debt on its back it’s critical to prepare yourself both physically and mentally.    

Accepting the Challenge

Boxers decide before entering the ring that they are going to beat their opponent.  They believe quitting is not an option and commit to enduring the pain and suffering that comes with battling an opponent just as determined to win as they are. Deciding to take control of your debt may be a long process depending on the amount of debt you have and the number of creditors you owe.  In the beginning, you must decide to finish no matter what it takes.

Understanding Your Opponent

Now that you’re mentally prepared its time to get a complete picture of your debt. To do this, I suggest creating a list of your creditors, their contact information, the balance you owe, due date and the interest rate you are paying.  This sheet should also include debts in collections.  Information on old debts can be found on your credit report.  You are entitled to one free report from each of the three agencies once a year.  To obtain your report go to www.annualcreditreport.com or call 1-877-322-8228.  If you don’t know your credit score I recommend ordering it online to get a good gauge of how lenders view you.  The scores range from 300-850. The higher the score the lower the risk the creditor takes when loaning you money. There are many sites on the internet where you can order your score. It should cost you about $40 to obtain your score from all three agencies.  There are sites that offer free scores, but be sure to read all the terms and conditions as many are only free when agreeing to enter a monthly credit monitoring program that  charges a monthly fee. 

It may be overwhelming or even depressing to see all your debt on one sheet but remember you’re committed to winning and a positive attitude is essential to your victory.  

Training

Paying all debts in one shot is unrealistic for most.    The best solution for gradually eliminating debt is a simple technique called debt stacking. With debt stacking, you focus on paying the debts with the highest interest rate first. Therefore, instead of you choosing which debt should receive a “little” extra this month you automatically apply the funds to the debt with the highest interest rate. Its extremely tempting to pay more on the debt with the highest balance, don’t make this common mistake.  You will save more money and diminish debt sooner by following the debt stacking technique. Once a lender is paid, use the money that becomes available to increase your monthly payment to the next lender. You continue to follow this process until you are completely debt free.

The Fight                         

Armed with your strategy and committed to beating down balances your ready to go.  In the fight, it’s important to recognize your worse enemy is you. Too often, we blame the lenders for our personal debt crisis. Although lenders play a role with their unjust practices, you must battle against yourself daily, blocking urges of instant gratification and bobbing and weaving the temptation to live beyond your means.    

Lawmakers are aggressively working on ways to protect consumers from creditors. Just last month Congresswomen Carolyn Maloney’s, Credit Cardholders Bill of Rights cleared the House Committee and is now going to the Senate.  Amongst other protection, the bill will require companies to mail statements twenty-one  days before the due date as opposed to the current fourteen day rule, prevent companies from using misleading terms and require that payments made in excess of the minimum be allocated proportionally or to the balance with the highest interest rate. In addition, President Obama and economic advisor Lawrence Summers recently met with credit card companies to discuss ways to regulating unfair practices.

Even with new legislation, the outcome of your fight is your responsibility.  Like a skilled fighter, you must develop tunnel vision and focus on the benefits of winning.

Sources:

1. National Foundation for Credit Counseling, 2009 Financial Literacy Survey, April 2009
2. The Moody’s Credit Card Index, March 2009

Optimum Capital Management, LLC, a fee-only advisor, is committed to providing highly-skilled, full-service financial planning in the most cost efficient means for our clients.  As the financial planning industry has shifted to a more product driven strategy, Optimum remains steadfast of purpose by continuing to focus on a service-oriented strategy.

http://www.optimumcapitalmanagement.com/

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Ok, pop quiz.  Have you ever made one or more the following statements in your lifetime?

1. “I promise to start my exercise plan tomorrow, seriously.”
2. “If I just lose 5 pounds, I won’t have to pray before trying to squeeze into those new jeans.”
3. “I really need to stop smoking.”
4. “Who cares if that Whopper with Cheese has 770 calories and The Cheesecake Factory’s Chocolate Oreo Mudslide cheesecake has 1,050 calories in just one slice…I’m worth it!  Besides I’ll just work it off on the exercise plan I’m starting tomorrow.” [1]

Sounds familiar, right?  But did you know that each of these statements directly affects your ability to obtain adequate and affordable health and life insurance? 

When applying for individual health and life insurance, underwriters evaluate your health based on several factors to ensure they are not taking any unusually high risks by insuring you.  In other words, insurance companies want to reduce the probability of having to pay out a claim so if there are any health conditions that may increase those chances, they are more likely to decline coverage or charge higher premiums to cover the  increased risk.  Some of the health conditions affecting your insurance coverage include:

* Medical conditions such as High Blood Pressure, High Cholesterol, Diabetes

* Smoking

* Poor Diet/Lack of Exercise/Overweight

* Stress

* Family History of Chronic Illnesses

Don’t worry if you have one or more of these conditions – you still may be able to obtain coverage.  The key is to show the insurance company you are taking tangible steps, with your physician’s assistance, to manage your condition properly.  For example, with diabetes, insurance companies want to see that with diet, exercise and medication your blood sugar levels are within normal ranges.  This demonstrates you are genuinely taking an interest in maintaining a healthy lifestyle and also that will not likely lead to more serious problems or death.  Your commitment to change can be the deciding factor in not only whether you obtain coverage at all, but also your monthly premiums.

Likewise, by following basic physical fitness rules you can also significantly reduce your insurance premiums through preferred rates only offered to healthy individuals.  Not only do you enjoy the health benefits of looking and feeling good, you save money.  For example, a male nonsmoker may pay $88 in monthly premium, whereas a male smoker at the same age could pay at least $216 for the same face amount – that’s almost 40% paid more in premiums just because of smoking. [2] Factors that lower premium rates include:

* Routine exercise and well balanced diet plans

* Getting enough sleep and effectively managing stress

* Stop smoking and limiting excessive alcohol use

* Routine annual physical exams

* Meeting target weight and body mass requirements for your height

We can’t ignore the foundational importance of health and life insurance to cover unexpected expenses due to illness or death.  Let’s take the steps now to start our financial future today and as an added benefit we help our pocketbooks as well! Contact your Optimum representative today at 718-623-3423 if you have any questions about insurance products and how to increase your insurability.

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Saving for retirement has taken a back seat to other items in your budget for far too long. You may be waiting for the economy to recover, feel you don’t have enough money to save, or have simply decided to wait until you are “older”. Although planning for retirement can seem daunting, you will find relief in knowing that an early start is one of the most successful strategies. By putting time on your side, you increase the number of years your money has to grow and decrease the monthly amount you’ll need to set aside to secure a comfortable nest egg. 
 
If you had a choice of receiving $100,000 toward your retirement or a penny that doubled for 30 years, which would you choose.  Most would choose the $100,000 and miss out on a whopping $10.7 million.      

                                               Grow  Penny Grow
                                    Years  Interest Earned          Your Balance
                                    1          $0.01                           $0.02
                                    2          $0.02                           $0.04
                                    3          $0.04                           $0.08
                                    4          $0.08                           $0.16
                                    5          $0.16                           $0.32
                                    10        $5.12                           $10.24
                                    15        $163.84                       $327.68
                                    20        $5,242.88                    $10,485.76
                                    25        $167,772.16                $335,544.32
                                    30        $5,368,708.80             $10,737,417.0
 
Although financial institutes don’t offer you an annual percentage rate of 100% the above example illustrates the power of compound interest.  Compound interest is the concept of earning interest on top of interest. It’s the reason a penny can grow to ten million without another cent being added to the account. Each year the dollar amount of interest earned increases in response to a growing balance.  Without compounding, the account would have only gained $0.01 a year and grown to a measly $ 0.30.
 
Getting a head start on savings will also lower your monthly retirement bill making it easier to fit into your budget. Imagine you discover by using a retirement calculator that you’ll need $500,000 to retire at 65.  If you start saving at  25 your monthly commitment would be $78 to achieve your goal, if you wait until your 35 that number increases to $219.* That extra $141 a month could be used to save for a house, pay off debt or take a vacation. What you use the money for is insignificant to the high price you pay for procrastinating.   

Now that you’re clear nothing can replace the rewards of starting early, here are three things to remember when socking away money for retirement:    
 
1. Maintain a positive attitude 
Don’t look at saving as a burden. Focus on how you’ll feel once you reach your goal and take pride in knowing you are taking the necessary steps to plan for your tomorrow today. 

2. Perform checkups

Examine your progress at least twice a year.  Make sure your on track to retire at your desired age, verify your money will last and confirm you’ll be able to afford the lifestyle you want during retirement. To help with your examination work with a financial advisor or try one of the free retirement calculators on bankrate.com.  

3. Keep a long-term perspective

Sometimes you’ll look at your balance and feel you’ll never reach your goal. You’ll come up with a million and one reasons to withdraw your money.  Don’t do it! Remember you can only replace missed time with more money and who’s signing up for that.  
 
We must be proactive in planning our financial future.  With the cost of living increases, staggering health care cost and a troubled social security system we must partner with time to accumulate an adequate retirement fund.   

Optimum Capital Management, LLC, a fee-only advisor, is committed to providing highly-skilled, full-service financial planning in the most cost efficient means for our clients.  As the financial planning industry has shifted to a more product driven strategy, Optimum remains steadfast of purpose by continuing to focus on a service-oriented strategy. For more information or to receive sound advice,  visit: www.optimumcapitalmanagement.com

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Unemployment reaches record levels, the housing market is slow, and real wages haven’t increased in far too long.  Many are finding themselves discouraged and losing and faith for a better financial tomorrow.  However, an increased level of faith will allow all of our financial dreams and goals to come to fruition despite this recession.  

There are two primary components that comprise the essence of faith. The first element is “to believe”. Do you believe that you will be able to meet your goals and achieve wealth in your future?  Can you visualize that new house, new job, or a retirement fund that covers all of your living expenses for the remainder of your days? 

The second element is “acting on what you believe”.  This is just as important as the first.  I will outline seven actions that you can begin today that will allow you to demonstrate that your faith for a brighter tomorrow is real. 

One: Put together a household budget using a template, Quicken, or even a website such as www.mint.com.

Two: Make sure that you have adequate insurance coverage to manage life’s unexpected risks.  However, do not fall prey to predatory insurance coverage.  Let your needs dictate how much insurance you purchase and an insurance agent’s desire for commission.

Three: Plan your estate wisely.  Invest in a will, a living will, health care proxy, and a power of attorney.  We never know what tomorrow holds and our families left behind will suffer from lack of preparation.

Four: Increase your FICO score to 750 or higher.  Your credit score is too important to neglect. 

Five: Eliminate all of your credit card debt.  With a national average of 13.4% this debt is far too expensive for our households to carry.

Six:

Maximize your company retirement plan.  In my years of teaching I have NEVER heard of someone putting too much money into their 401K, but have heard many complaints about not putting enough.

Seven: Keep at least 6 months of living expenses saved in a high yield savings account for a rainy day.

If you can do just these steps you would be making a good start to a brighter financial future.  Remember, faith is not just a feeling…it is an action.  Take action today to take control of your financial future! 

Optimum Capital Management, LLC, a fee-only advisor, is committed to providing highly-skilled, full-service financial planning in the most cost efficient means for our clients.  As the financial planning industry has shifted to a more product driven strategy, Optimum remains steadfast of purpose by continuing to focus on a service-oriented strategy. For more information, visit: www.optimumcapitalmanagement.com

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Keeping track of your money is not always easy. Here are a few tips to help you on the road to financial success!

• Pay yourself first. Yes, it sounds cliché, but if you don’t then who will? $50 a month goes a long way. Direct deposit is great!

 
• Buy smart. Do you really need those Jimmy Choos?

Or can you wait until they go on sale? Must you buy a grande café mochachino everyday? Girl, NO. You know you don’t need it.

 
• Invest. Not only in your wardrobe… open a savings account, take out an IRA, 401k, mutual funds, stocks, and if you can purchase property!

 
• Know where your money goes. Don’t spend aimlessly. Pay attention to what you are spending your money on and how much you are spending. Find areas where you can cut back.

 
• Create a gameplan and stick to it. Budgeting doesn’t mean you are frugal, it just means you are being financially responsible.

 
• Educate yourself! Talk to your bank, ask a financial advisor, or research the web. Here is some suggested reading:

o Get a Financial Life – Beth Kobliner
o The Money Book for the Young, Fabulous & Broke – Suze Orman
o Black Enterprise magazine
o Money magazine
o Pink magazine

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We spoke with Glinda Bridgforth, author of Girl, Get Your Credit Straight!; Girl, Get Your Money Straight!; Girl, Make Your Money Grow!; and The Basic Money Management Workbook, about how to make sure we are on point in 2009. Here are the tips we gathered:

1.      What are some ways The Girlfriends can save money, especially during this recession?

Plan for where your money needs to go. Make sure you save so that you have money later to plan for retirement; and know where your money needs to go. As young adults, you have a lot on your plate (friends’ marriages, traveling, birthdays, your first child, etc.) put all these activities in your budget. It will be critical to how you will save. If you need to, set up an automatic direct deduction from your paycheck or checking account to go into your savings. Also sign up for 401k, IRA or ROTH IRA (ROTH IRA – won’t be taxed when you take the money out).  Don’t think you have to take out $100-300 all at once, start early and start small. Even $50 per month helps. If you think you can wait until the end of the month, think again because you and I both know it won’t be there. It may sound cliché but pay yourself first. No really, do it. If you don’t, then who will?

2.       When do you think the recession will be over? Are we out of the storm? Should we continue to count our pennies?

“Only recently has the government/media acknowledged that we are in a recession,” Bridgforth says, “WE have been in it for quite some time.” Financially, things are not going to end as soon as Obama gets into office. It takes time. Don’t have a scarcity mindset and think you have to “pinch your pennies”. You should save on an ongoing basis. “I have been a financial coach for 18- years. The things I talk about now are the same things I said then. You want to have a retirement fund, maintain good credit, pay your bills on time, and have a saving cushion” she advises.  You want to be able to sustain yourself until you get another job. As we see, there is a ripple effect in terms of the economy and the end has not come yet. This is a new era and it is more important for people to do a personal reality check of where they are financially. You don’t necessarily need to have 6-months of living expenses saved in the bank. But you should be prepared for the unexpected.

3.     With all the banks failing, is how good is my credit?

Banks failing really depended on the number of subprime loans they issued & the record number of people who were not able to maintain their loans. Understandably, they got scared and are now not lending as much money. According to Todd Murrell, Business Specialist at Carver Bank in New York city, “Banks have gone back to the old standard of banking. You must have  credit score of at least 620. If you have a joint loan then the lower credit score is taken into account. We require 10% down and a payment history of two – three years.” As always, check with your local bank to see what their standards are. By and large, banks are playing it safe. Credit and credit scores are so important so you MUST maintain your status. It will be more critical moving forward.

4.      I often find myself robbing Peter to pay Paul. How will it affect my credit if I pay one bill one month and another bill the next? What if I call them to let them know that I won’t be paying, is that okay?

No, it is not okay to rob Peter to pay Paul. It will affect you in the long term. Communicate with your creditors if you have problems. That’s what they are there for. If you have a good credit history they may waive one month. If you cannot afford your minimum credit card payments, ask them if it can be lowered. They may or may not lower it, but you will never know unless you ask.

Throughout it all, you must maintain a good credit history. They might have you pay only the interest or a smaller payment.  Talk to them and try to work with them. If you skip a payment & double up the next time, you will have a 30 day late notice. It will stay on your report for seven years and will affect your credit score. Now imagine how your credit report will look if you do that for multiple creditors. Not a good look at all.

5.      I am one of the lucky ones who was able to keep my job. However, I recently was forced to take a pay cut in lieu of being fired. Should I cut back on my savings?

Yes. It is okay to temporarily cut back on your savings IF AND ONLY IF you are able to cover all your bills and you stay current on all your payments. People save money for all sorts of reasons. It depends on what your goals are (i.e. saving to buy a house, trips, etc.) and why you choose to save. You should always continue to save something. If not 10% then 5% and when your income increases, go back to your original savings plan.

~Bettina Lee

———————————

For more information on how to create your financial fortitude, visit: www.bridgforthfinancial.com and Sign up for Brigforth Financial Teleclasses

Get Your MONEY Straight:  Prepare, Plan and Prosper

January 8th & 22nd at 9pm EST or January 10th & 24th at 12pm EST

Learn to:

1. Develop a Spending Plan that works just for you
2. Deal with shortfalls and excesses in your Spending Plan
3. Track your expenses and know why it’s critical to know where your money goes
4. Create strategies for debt payoff and savings growth at the same time

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