Banking And Finance

From The Hoss's Mouth

Banking and Finance

Banks or other financial institutions provide a valuable service in our society. The Hoss asks you to consider which option is better: keeping your money buried in the back yard, keeping it hidden in a mattress, or keeping it safe in a financial institution. Unless you are brain dead, you chose the "safe in a financial institution" option.

Horse race owners insure their primary assets: their horses. You insure your house, your car and your life. It only makes Hoss Cents that you insure your money by depositing it in a bank or financial institution of your choice. Federally insured institutions are protected up to $100,000 ($60,000 in Canada).

Selecting a bank or financial institution is similar to selecting a horse to wager on. You gather all available information, do the research and make a selection. You may not always pick a winner, but by doing the leg work you increase the odds of being successful.

The Hoss was extremely fortunate when it came to choosing a financial institution. When he married Mrs. Hoss she worked for a credit union that offered their employees many benefits (reduced fees) not available to non-employees. In all likelihood you are not in such a favorable position, so The Hoss has compiled a list of items for you to consider when deciding which bank or financial institution best fits your priorities. The Hoss points out that these are suggestions only and by no means a complete list of all items that may be of importance to you when choosing a bank or financial institution.

• Location: Do they have branches in areas frequented by you and your spouse?

• Visit each institution and evaluate customer service.

• Do they offer the type of account(s) you require?
  

• Are the hours of operation convenient?

• Do they have ATMs ?

• Do they offer Internet banking?

Compare the rates, fees and service charges on the following:

• bounced check fees
  

• safety deposit box charges

• ATM charges
  

• checking fees

• annual fees

• interest rates for loans

• interest rates on deposit accounts

Please feel free to leave a comment or add any tips you may have by clicking on the comment section of this blog.

Stay on track,
The Hoss

Next Hoss Cents Free Financial Money Magazine Post: Beginner Investing

Previous Post: Money Saving Tips

Money Saving Tips

From The Hoss's Mouth

The Hoss has compiled a number of money saving tips to assist you and your family in planning ways to cut your family expenses. Many of these tips are easy to implement and will result in considerable savings to your budget.

• Money saving Tip 1: The proper use of a programmable thermostat can result in a considerable savings in your home heating bill. Consult your local power company for recommended settings or look for information on the Internet.

• Tip 2: When going on vacation be sure to utilize the vacation setting on your hot water tank.

• Tip 3: Fix leaky faucets.

• Tip 4: Use weather-stripping and/or caulk to plug heat loss from drafty doors or windows.

• Money Saving Tip 5: Seal all energy leaks. Cracks and small holes around windows and exterior walls should be caulked.

• Tip 6: Purchase energy efficient compact fluorescent bulbs to replace standard candescent bulbs.

• Tip 7: Here's one you've never heard before: Turn out the lights.

• Tip 8: Turn of your computer and monitor when not in use.

• Tip 9: Basic cable only. Do you really need all those specialty and movie channels?

• Money Saving Tip 10: Do you really need call waiting, caller ID, voice-mail, call forwarding and three-way calling? Consider cancelling one or all of these services.

• Tip 11: Compare the various long distances providers. Choose a plan best-suited to your needs. Pay attention to their rounding policy. Do they charge by each minute or portion thereof or do they charge for actual time used? If you talk for a minute and a half and get charged for two, that is an unnecessary expense.

• Tip 12: If you are paying for multiple cell phones, this can be very expensive. Eliminate any that are supplemental to your basic needs. Sign up for family plans.

• Tip 13: Automatic teller machines (ATMs) are a great invention. However, you may be charged a transaction fee for using an ATM not associated with your financial institution. Identify which ATMs you can use without incurring a transaction fee.

• Tip 14: Closely monitor all your bank's service charges and identify areas where these charges can be eliminated or reduced, such as reducing the number of times you use ATMs if you are being charged per transaction.

• Money Saving Tip 15: Utilize the coupons in your local supermarkets' sales flyers. This could result in a huge savings in your budget for groceries.

• Tip 16: By store brand rather than name brand.

• Tip 17: Garage sales can also help reduce your expenses. You can pick up quality items for a greatly reduced price.

• Tip 18: End of season clearance sales can provide a huge savings on clothes.

• Tip 19: Where you have the expertise and knowledge, do it yourself. Paying service people can quickly add a great deal of unnecessary cost to your budget.

• Money Saving Tip 20: For special occasions such as birthdays, avoid gift-wrap that is expensive. Shop the dollar stores for good cheap wrapping. Mrs. Hoss does this all the time; she finds gift bags for a dollar, no more than two dollars, depending on the size.

• Tip 21: Learn to change the oil on your car. This can save you a few hundred dollars a year. Otherwise, utilize the many coupons that are available.

• Tip 22: Save on gas by keeping your tires fully inflated and your car tuned.

• Tip 23: Eat at home with meals prepared at home. Pack a lunch for work. Restaurant and take out foods are expensive and greatly increase budget expenditures.

• Tip 24:Eliminate those specialty coffees at the specialty rates.

• Money Saving Tip 25:Be self-motivated: Workout at home. Spa and health club memberships are costly.

• Tip 26: Pay cash. Many stores offer discounts for cash payment.

• Tip 27: Shop for an insurance company that will give you a preferred rate if you carry all your insurance with them. For example: car insurance, mortgage insurance and household insurance.

• Tip 28: Look for free activities: Take your kids to the park for a picnic and feed the ducks. Check your local newspaper for community events that are offered free of charge.
  

• Tip 29: If you go to a movie, make it a matinée or on a discount evening.

The Hoss realizes you may not be in a position to implement all of the above money saving tips, but make the most of as many as possible. This will help you and your family reach the financial goals you have established.

Stay on track,

The Hoss

Next Hoss Cents Free Financial Money Magazine Post: Banking and Finance

Previous Post: Creating a Budget

Creating a Budget

From The Hoss's Mouth

The Hoss says: Creating a budget is a necessary tool which will enable you to meet your financial goals. In order to create a successful budget you must do the following:

Hoss Cents Free Financial Money Magazine Success Tip

• Categorize how and where your money is currently being spent. Collect all your financial statements for the past six months. This includes bank statements, mortgage payments, recent utility bills, gas bills, food bills, insurance bills, credit card bills and all cash receipts. In addition, total all your sources of income. In short, any information regarding income or expenses that will help in creating a budget.

• Evaluate your income and spending to see if your current lifestyle is meeting the priorities you and your family have established to achieve financial success (see establish financial priorities).

• Compare your income versus expenses. I suspect many of you have expenses that exceed your income. Have each family member identify areas where they can reduce their expenses and increase their income. You will note you have certain fixed monthly expenses, such as your rent or mortgage, utilities and insurance payments. It is unlikely that you will be able to significantly reduce these expenses, so concentrate on your family's variable expenses. Expenses such as clothing, transportation, groceries, and entertainment. Cut these variable expenses and produce a budget that adjusts your spending habits so that you and your family will be able to reach your financial goals. The goals you wrote down as per the Hoss's instructions in the previous post of this blog. The Hoss realizes this is not an easy task. His next post will provide you with suggestions that will enable you to identify areas where costs can be reduced and help you with creating a budget.

• Each and every month, review your budget and make sure you are on track with your goals. Identify where you did well and what areas need to be adjusted to meet your target. This is extremely important if you are to achieve the targets set by you and your family. Be honest with yourself; cheating results in failure and you will fail in creating a budget.
  

The Hoss has prepared a budget pie chart which identifies expense categories common to all families, and suggests what percent of your take-home pay should be allocated to each area. The Hoss has also included some examples of the types of expenses in each budget category. The list of expenses below is by no means complete, but is provided as a guide to help you get started. Each and every family will have to construct a budget according to their needs.

Housing: mortgage, utilities, cable, insurance, taxes

Living Expenses: entertainment, miscellaneous items

Savings: emergency fund, investments, retirement

Transportation: gas, insurance, parking, bus

Debt: loans, credit cards, etc.

Food: groceries, vitamins, etc. Note from Mrs. Hoss: Booze is not a food group

Hoss Cents Free Financial Money Magazine Success Tip

The Hoss suggests you seriously consider using an accounting software program. This will enable you to simplify the process of recording your financial transactions and creating a budget. Most of these programs enable you to assign each transaction a specific category, and to compile a report detailing these transactions. This enables you to track how much you have spent on such items as fuel, insurance, car repairs, groceries, clothing, mortgage, etc. Your sources of income are also tracked. In other words, it simplifies the evaluation process outlined above. If you have a Microsoft PC, The Hoss suggests utilizing Microsoft Works, as it usually comes free with the purchase of the computer. It contains a monthly budget template which will help you set up your budget.

The Hoss says: It really is that easy folks. Track your income versus expenses, and then adjust to meet your family's financial goals and you will be successful in creating a budget.

Stay on track,
The Hoss

Next Hoss Cents Free Financial Money Magazine Post: Money Saving Tips

Previous Post: Setting Financial Priorities