Don’t Get Caught with a Financial Holiday Hangover

By
Mark Nicolet, CFP®, MBA, ABFP™
December 17, 2018
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The holidays are meant to be a joyous time, one of socializing, gift-giving and charity. Multiple holiday influencers, such as our faith, family and even the media, can impress upon us what celebrating the holidays mean and possibly lead us to overextend ourselves. The result can leave us recovering physically, emotionally, and often, financially. With a little forethought and discipline, though, we can bring in the New Year without suffering from a financial holiday hangover.

The first step is to establish a holiday budget. If married, be sure that this is a joint project with your spouse. Start with a gift list – who do you want to gift and how much do you want to spend on that gift. Be realistic with what you can afford and who warrants a gift. Don’t feel compelled to give one just because you receive one. Most importantly, stay focused on the meaning behind your gift, rather than the price tag. Your recipient will value the thought and care you gave.

The budget doesn’t stop with gifts. Consider all the non-typical expenses that arise during the holiday season; décor, food for entertaining, tips for preferred vendors, dry-cleaning for the holiday parties, hostess and host gifts or dinner tabs, and travel. Also, don’t forget about charitable giving. Including this in your budget will deter you from being influenced by emotion and possibly overextending yourself.

Clearly, when all is considered, this can be quite an extensive budget. Ideally, you want to start saving in January as the last thing you want to do is use a credit card to cover these expenses. For those who find it difficult to stick to their budget, utilizing cash or prepaid cards can help you stay on track. There are many tools available if you’re willing to use them.

This may sound like a lot, but a little forethought and discipline can go very far for you. I wish a happy and healthy holiday season to all. More than that, though, I wish you a happy and healthy new year, free from the financial holiday hangover.

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By
Jim Young
July 21, 2022

Ok now that you’ve recovered from falling off your chair after reading the tile of this blog, let me explain.

Inflation is one of the biggest challenges in achieving, and maintaining, financial independence. The low inflation we have experienced for decades has made many of us lazy when it comes to spending.  Now is the time to put some great habits into place that will reduce your spending now and will help even more when inflation get’s back to historical norms.

Here are some tips:

  1.  The days of clipping coupons seems to be a thing of the past.  Time to resurrect this time-tested way to save money.  Now it’s done electronically.  Click here for a great article on coupon apps.
  2. Bargain shop.  The meat department is the best place to shop for deals.  Supermarkets would rather greatly reduce the price on meat than throw it away.  I’ve seen bargains at 50% off.  And not to worry, the meat is still good.
  3. Dump the name brands.  I am a big name-brand guy however that is changing.  You can save 30-50% on certain items by going with the store brand such as Kroger at Ralphs.  Just today we saved 30% on peanut butter and couldn’t tell the difference.
  4. Use those credit card miles.  If you fly Southwest use their Chase Rewards Card.  This year alone I flew two of us to Hawaii roundtrip and flew myself to NY and used my miles.  Pretty much all carriers have credit cards they use for miles.
  5. If you shop at Ralphs use their Ralph’s Reward Card.  They have a great app that shows you year to date savings.  We have saved $500 so far this year.  You also get fuel points that you can used at Shell Stations.  I’ve saved as much as $.50 per gallon!
  6. This one is real hard for me but try to walk out of restaurants with a doggie bag.  I’m the type of person that if something is real good, I’ll clean my plate (thanks mom!).  But with portion sizes so big you should have no problem making two meals out of one.  Your wallet and belly with thank you!

 

These are just a few habits to help get you through this time of high inflation that could help your plan when inflation gets back to “normal”.

By
June Adams
May 10, 2022

How long do you think it would take a hacker to crack your current passwords?

On average, it takes a hacker about 2 seconds to crack an 11-character password that only uses numbers. See the attached chart that illustrates the time it takes for a hacker to brute force attack your password. A brute force attack is when cybercriminals use trial and error to guess your details. Cybercriminals currently use sophisticated software that can run thousands of password combinations in a minute, but their technology and resources are only getting stronger.

A general rule is that your password should be at least 11 characters, utilizing both numbers as well as upper and lowercase letters. That combination will take hackers 41 years to crack. Regardless of the possible variations, the shorter your password, the easier it is to crack. Check out how long it will take a hacker to crack your password at https://www.security.org/how-secure-is-my-password/.

Lastly, simplify and secure your accounts by using a password manager that creates and stores all your passwords for you.

Strengthen your password security with the following tips:

  • Prioritize the length and complexity of your passwords.
  • Don't use personal information. This can be publicly available and easily accessible by hackers.
  • Avoid using dictionary words as passwords. Cracking tools can easily process every word in the dictionary.
  • Don't reuse passwords. If one account is breached, your other accounts would be vulnerable as well. Rather, use password managers, which are a convenient and secure way to manage complex passwords on multiple platforms.
  • Use multifactor authentication (MFA or 2FA) for especially sensitive accounts.
  • Avoid typing passwords while using public Wi-Fi. Instead, use a VPN or avoid websites that require your login information.

 

 

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