Guest Post: HEALTHY EATING ON A BUDGET

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort inorder to help you reach YOUR Financial Independence. Today's guest post comes to us from Candise Jordan.

DON’T LET TIME OR MONEY GET IN YOUR WAY OF HEALTHY LIVING

Most Americans live very hectic lives that can make it pretty hard to eat healthily. Working long hours, picking the kids up from school, taking them to practice, church meetings, family plans, etc. We live life in the fast lane, on the go so that’s how we eat “fast”. Why do you think fast food is so popular?

Now, as if it wasn’t difficult enough to make time to eat healthy now in this economy we have to worry about finances. Dollar Menus and $5 Value Meals sound like good deals but are they really??? I too fell victim to the dollar menu hype but then I realized I wasn’t really saving any money I was just gaining weight. Now with a little planning I’m actually eating right and saving money. Here are a few tips to help guide you:

1. Contrary to popular belief buying Organic is not super expensive. You can find organic products in your local health food stores. Safeway has an Organic Brand named O that cost about the same and in some cases are even less expensive than name brands and Giants has Nature’s Promise which is almost ALWAYS on sale.

2. Choose whole grains, beans, legumes and other fibrous food. When you eat foods high in fiber you’ll fill up faster and eat less therefore your meals will last longer. Saving you $$$ If you eat a bunch of junk food you end up hungry and have to buy more food.

3. Shop wisely. Stock up on sale items & buy your most eaten items in bulk. Buying store brand is also a good way to save a few dollars.

4. Believe it or not a home cooked meal is actually cheaper than fast food even the infamous “dollar menu”. A quick meal such as Spaghetti can be made in 20 minutes for less than $13.00. 1 box Safeway Organics whole grain pasta $1.89, 1.3lbs of Shadybrook Farms Ground Turkey 93% Lean is $4.49, Organic Spaghetti Sauce is $3.50, and a bag of Organic Frozen Veggies $3.00. Total Meal cost $12.88 for 8 or more plates. You can feed the family and still have leftovers for the week.  If you were to take that $12.88 to McDonalds you could opt for 2 value meals or 4 meals if you chose dollar menu items only. That’s less than half of the servings you would have if you cooked. Not to mention less nutrients and way more calories, sodium, and cholesterol.

5. Timing is everything! If you don’t have a lot of time to cook whenever you have some downtime cooks multiple meals at once so you have leftovers through the week.

6. Another problem my clients have is eating throughout the day. You have to constantly feed your body for energy and nutrients. When you skip meals your body goes into starvation mode and holds on to as many calories as it can to reserve for energy later. Also, when you skip meals you are more likely to overeat once you do eat. This soar in blood sugar can cause diabetes and weight gain. Pack your lunch including snacks: your lunch can be that left over spaghetti. Your snack can be fruit, Stoneyfield Organic Yogurt ($1.00 each), or even Nature’s Valley Bars $2.99 a box (it’s cheaper to buy the box than the individual bars)

7. Frozen Dinners are cheap & quick. Make sure that whatever frozen dinners you choose the daily value is less than 20% in sodium, cholesterol & fat. Healthy Choice, Lean Cuisine, Organics by Safeway, Morning Star and Kashi are good choices. If they are not filling enough add nuts, an additional vegetable or beans as a side.

8. Plan your meals around foods that you already have. For example, if you have a can of beans at home don’t go out and buy ground turkey for the night. Cook a quick beans & rice dish. You always want to make sure you use what you have before they expire. Throwing away food is like throwing away money.

9. If fresh veggies and fruits cost too much frozen is the next best option. It is cheap and doesn’t lose as much of its nutritional value or add as much sodium as canned veggies & fruit.

10. Prepare for the grocery store: First make sure that you eat before you go to the store. When you go to the grocery store hungry “everything looks good”. You’re more likely to buy foods on impulse. You also need to make sure you have a list ready. Check out the weekly specials and plan accordingly.

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Reader Stories: How to pay off debt and save money! Part 2

This post is from the series called "Reader Stories" about tips, success, and lessons learned by our readers. Be kind and enjoy!

Today's Reader Story comes from a mother of two with an eye for discounts. She has found ways to save money on many items and services we all use every day. Many tips are so simple, they are profound.

Understanding the difference between need and want is critical in being successful once you embark on a financial plan or goal

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If you absolutely need something try looking for it on Ebay or Craigslist prior to purchasing in a store.  One example is a cell phone charger.  I could have purchased one at the sprint store for 29.99 and decided to check on Ebay where I got not one but three chargers for a total price of $5.64.  I wanted a bobby pillow before having my second child to make breastfeeding easier and because this was a want not a need I decided to look for it used on craigslist versus buying at Baby R Us for $39.99 and ended up getting a used one for $5. 

According to Pet Education, the cost of owning a dog over its lifespan is anywhere from $5k-$14k depending on how thrift you are.  If you are thinking about purchasing an animal, I would advise against it if you are trying to pay off debts or save money because caring for animals is costly and a want not a need.

Clothes shopping?  I only shop at goodwill or salvation army for clothes.  Salvation army has 50% off most of their clothing and shoes every Wednesday which makes their prices much lower than goodwill prices.  I wear dresses often because the price is $4.99 at goodwill for a dress where an outfit would end up costing more than that.

Buy generic when better and take a calculator with you to the store.  If you are trying to determine which diapers or cereal box is the better deal.  Take the price of the item and divide by how many items you receive or ounces you get, then do the same for the other item so you know exactly how much you are paying.

$15.99 for 103 diapers (15.99 divided by 103 = 15.52 cents per diaper) 

$5.00 for 33 diapers ($5.00 divided by 33 = $15.15 cents per diapers)

In this example, it is a better deal to get the 33 pack diapers because per diaper it is cheaper.  I buy dental floss, mouth wash, aluminum foil at the dollar store and buy anything generic you can.  Walmart has equate Valvoline for $1.00 where the Valvoline (name brand alternative in same size bottle is $2.79).

I now only buy soda pop if I can get it for 25 cents a can or less and anything more than that, I am simply not interested.  This means I can have enjoy 6 cans over 6 days for the same amount of money I would have spent on one 20 ounce bottle at the work vending machine.  However, tap water is much cheaper than soda pop so would be the best option.

The average household in the United States has over 8k in credit card debt.  An $8,000 debt at a rate of 18% interest will take more than 25 years to repay and cost more than $24,000.  Do you know your interest rates?  If you don’t call your credit card companies and find out.  Some credit cards can charge interest as high as 30% or as low as 13%.  You want to pay off the 30% credit card first versus the 13% card.  However, work to never spend more money than you make.

How could a credit card pay you to use it? That sounds too good to be true.  The reason credit card companies want you to use them is because they get a cut every time you purchase something.  Credit cards charge the merchant for accepting the credit card 2-4% of the purchase price

Look for programs to help you save for your future goals.  For example, citizens bank has a savings program for purchasing a home where you save $100 a month for three years and they give you $1,000 in free money towards the down ayment on a home.  They also have a college savings program where you save 25 a month, each month, and are rewarded $1,000 in free money once your child reaches 18 years old.  Go here for more information:  http://www.citizensbank.com/savings-and-cds/college-saver.aspx

Buying a home, use an easy rule of thumb to ensure you are living within your means.  Never purchase a home greater than 2.5 times your yearly income.  Doing so could put you in dire financial strain in the future.

Aim to never buy a house unless you have 20% of the purchase price to put down on the home.  Why?  If you do not have 20% down when you purchase the home the bank considers you a risky person to lend to and buys “private mortgage insurance on you (AKA PMI).”  You will be paying an extra monthly charge with your mortgage of $37.50 a month or $450 a year.

Stay tuned for part 3 and don't forget to comment and discuss!

Want to share your success and tips? 

Email personalfinance4thepeople@gmail.com to find out how.

Reader Stories: How to pay off debt and save money! Part 1

This post is the first in a series called "Reader Stories" about tips, success, and lessons learned by our readers. Be kind and enjoy!

Today's Reader Story comes from a mother of two with an eye for discounts. She has found ways to save money on many items and services we all use every day. Many tips are so simple, they are profound.  

I bought a house for $56k and a car for $16k just five years ago and have paid them both off with an income of $45k a year.  I was also able to afford $6-8k a year in daycare expenses.  How did I do it?  Hopefully these tips will help.

     

The two biggest ways to manage or save money is through budgeting and auto-deductions.

1.)  Budgeting- Review all credit card statements and ATM withdrawals to find out exactly how much money they are spending in different areas.  From there, you can prioritize what's most important to you and where you are willing to cut back on spending to free up money to put toward their financial goals.  Typically, people are spending a lot more money than they realize on food, entertainment, miscellaneous expenses throughout the day, and clothing.  It's also a great idea to have people carry around a check register or regular pen and paper to immediately write down every expense they incur for one whole month.  It's amazing how fast expenses add up!

2.)  Auto-Deductions- Just like people have 401(k) contributions set up to pull money out of the paycheck before you see it.  People automatically adjust their lifestyle to spend whatever is left in their account so you most likely will not even miss it.

3.)  If you shop on the internet, don’t check out without googling a coupon code.  I have saved over $100 and received free shipping by simply finding these coupon codes online.  I recently made a purchase at K-Mart online free ship to store.  The local store already had the items I wanted and I used a coupon code to obtain 20% off my order and when I went to pick them up I didn’t have to wait in a large line or go look for my items.  They had my items ready to go and I already paid.  This saves time and money. 

4.)  Look at all your bills?  I have saved $5 a month for a year just by calling my cable provider and asking if there were any promotions or discounts available or anyway to reduce my bill.  I already had the smallest package they offer but they still were able to give me $5 off a month for a year because of my persistence.

5.)  Don’t go to the cell phone store, call them instead.  I went to a sprint store and they told me there was no such thing as a 500 minute plan.  They told me this, I propose, because they do not make any sales bonuses off selling contracts like this.  I called sprint customer service and obtained a 500 minute plan with free sprint to sprint (all I need) for $35 a month on a basic phone.  Not having a fancy phone is an easy way to save money.

Stay tuned for part 2 and don't forget to comment and discuss!

Want to share your success and tips? 

Email personalfinance4thepeople@gmail.com to find out how.

8 Risky Business Investments That Paid Off Big

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from Online Business Degree.

Business is not for the overly cautious or the faint of heart. If you’re going to run a business or invest in a company, you have to be willing to take risks, big and small. Sometimes these risks become regrets, but sometimes they turn out to be the best decision you’ve ever made. Here are eight risky business investments that paid off big.

1. Target:

   
   Target has prided itself on being a unique, consumer-savvy retailer that is above Wal-Mart and K-Mart. But well before Target became the store of choice for soccer moms and yuppies, it was just another low-brow discount retailer trying to keep up with its competitors. A big turning point in Target’s success was adding affordable versions of designer merchandise made by big-name designers like Issac Mizrahi, Mossimo Giannulli, Proenza Schouler, Rodarte, and many more. The collaboration was a risky, yet lucrative investment that has helped Target expand its consumer demographics and become a well-respected retailer.

2. Harley-Davidson:

   
   Considering how incredibly popular Harley-Davidson is today, it’s hard to believe that the motorcycle company was ever on the verge of bankruptcy, but it’s true. Harley-Davidson experienced near-bankruptcy from 1969 to 1981 when the American Machine and Foundry (AMF) bought the company and turned it upside down. AMF’s decision to streamline production and slash the workforce resulted in labor strikes, low quality motorcycles, and declining sales. It wasn’t until AMF sold struggling Harley-Davidson to investors Vaughn Beals and Willie G. Davidson for $80 million that the company started to turn a profit again. Harley-Davidson returned to its beloved retro styling and started using high-quality parts, which helped bring back the buyers one by one. If those brave investors hadn’t taken a chance on Harley-Davidson and helped restructure its name, the “Hog” might have been ancient history.

3. Apple:

   
   Apple lovers around the world will find it hard to believe that one of the fastest-growing and most successful companies in the world was once close to bankruptcy. During the late ’90s, Apple was struggling to meet sales goals and internal power struggles were greatly to blame. After former CEO Gil Amelio was let go and Steve Jobs was brought back to fill his spot, things began to change for the better. Jobs helped restructure the brand and launch the revolutionary products that the brand is now known for. Jobs’ return to Apple proved to be a risky, but crucial business decision that helped steer the company toward infinite success.

4. J. Crew:

   
   Believe it or not, but the uber successful retailer, J. Crew, was once on the fritz with plummeting sales and branding issues. It wasn’t until Millard Drexler, former Gap Inc. chief, came to the rescue in 2003 and helped turn the company around for the better. Drexler is credited for saving J. Crew from bankruptcy by rebranding the store and giving it a new identity. Under Drexler’s leadership, J. Crew experienced a dramatic increase in sales, earning $3.8 million in 2005. Revenues have continued to increase every year and investors couldn’t be happier with what brave Mr. Drexler has done for J. Crew.

5. Google:

   
   Google is one of the largest companies in the world and its founders, Larry Page and Sergey Brin, are some of the richest entrepreneurs to date. But before Google became the giant corporation that it is today, it was almost sold for a shy $1 million to Excite CEO George Bell in 1999. Brin and Page nearly gave up their would-be fortune because the search engine they built was taking up too much of their time and distracting them from their graduate studies. The risky transaction did not happen because Bell rejected their offer and negotiated them down to $750,000. Their patience paid off months later when big name venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital invested $25 million in Google.

6. TOMS Shoes:

   
   TOMS Shoes may be as well known for their charitable shoe drop as they are for their fashion. Since the company launched in 2006, TOMS has provided new shoes to children in need through their non-profit organization, Friends of TOMS. The One for One program has given away more than 1 million pairs of shoes to children in more than 20 countries worldwide. Founder Blake Mycoskie created TOMS with the original intention that for every pair of shoes sold, a new pair would go to a child in need. After developing his idea, Mycoskie sold his online driver education company and financed the shoe company himself. He has remained true to his company’s mission and, although he may have lost profits in the process, his innovative business model has certainly paid off big.

7. Whole Foods Market:

   
   The story of Whole Foods Market begins with four brave businesspeople living in Austin, Texas, who decided that the natural foods industry was in need of a leading supermarket. Founders John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery, were determined to make this happen even though popularity for local, organically grown foods was still rather low in the late ’70s. In 1980, they decided to leave their small natural food stores behind and invest in a game-changing supermarket that we’ve now come to know as Whole Foods Market. The organic grocer became an instant success and the founders’ hard work definitely paid off big.

Monday's Entrepreneur: Donna J. Potter

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.

We often hear about the cost of “doing business” but how often do you consider the cost of a career?  For Donna J. Potter, the cost of her “well paying” career was too high.  As a paralegal who was working 12 – 13 hours a day she was told rather than consulted about her schedule.  Donna describes her career as “very political” and “not a good fit”.  Too often she had to rely on family members to help with daily parental tasks as simple as picking her children up from daycare.  Her family was young and some days she was just too exhausted to be a parent

Mrs. Potter felt stuck and trapped. Like most families they required both her and her husband’s incomes. Though she wanted to quit her job, it covered a substantial portion of the family’s living expenses.  In the midst of her inner turmoil she witnessed the more balanced lifestyle of her two brothers.  They were both entrepreneurs and enjoying the personal freedom she longed for.  One of her brothers owned a delivery company and the other ran an online business as well as a ministry. Donna had come to the realization that no amount of money was worth her personal freedom.

Donna’s opportunity to create the life she wanted came in a form that the average employee dreads. The company she was working for merged with another law firm.  As a result of this merger, staff cuts and layoffs ensued.  Many of her colleagues were praying that their jobs would be spared.  One person even had an anxiety attack.  As the day wore on, Donna found herself becoming depressed because she felt that she might be kept on staff. When she was called in to speak with one of the partners, he was reluctant to let her go. Donna, however, felt that her “prayers had been answered”.  She accepted the severance pay and benefits and used that time to look for a home based business.

That was nine years ago. In that time Donna J. Potter has created a substantial stream of income in a company that supports her passion – health and wellness. The "It Works" Body Applicator Contour System” she markets has remarkable internal and external results. When asked about the pros and cons of entrepreneurship she shared a perspective that could be seen as both.  “When you are in business for yourself there is no one you have to be accountable to.”  It is important that the same discipline, commitment, and application of your skill-set that you are committing to someone else, is applied to your own business.

If you are considering stepping into the world of the self-employed individual, Donna shared three prerequisites:
1. have the discipline to follow through for yourself
2. find your passion because all money is not good money
3. be a people person.

Donna can be reached via email shrinkfatwrap@gmail.com Find out more about this amazing product at http://www.myitworkswebinar.com  “Ultimately”, Donna says, “once you help enough people get what they want, you’ll get what you want.”

POWERLESS?

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.

Talk to anyone about the economy and the topic of income disparity will undoubtedly come up.  As a person of color who is working to build wealth, I feel we have underestimated our power.  We live in a capitalist society.  That means that money is extremely important.  If you think that you are powerless because you don’t have a booming bank account, consider this: we are the largest group of consumers. 

            What does this mean? This means we have a tremendous amount of buying power. If we want to influence anything, you can use your purchasing power to do it.  If you don’t like a company’s hiring practices, customer service, or company policy, utilize the power of the pen, word of mouth, and your purchase to make your displeasure known. 

            A great example of this is Earle Graves, Sr. He shared a story in which he was displeased with a certain state’s stance on affirmative action.  Mr. Graves made his stance known to the elected officials of that area.  He encouraged the organizations he was affiliated with to do the same and he canceled the events he planned to host in that area that would have brought them revenue.

Now you may be thinking that you don’t have that kind of influence.  I beg to differ. If you tried, you could list 10 areas of your life (job, church, family, etc.) and list ten people you are affiliated with in each.  That is 100 people. At least 1 out of 5 are likely to spread the word, especially if you harness the power of social media.  So take heart! You don’t have to be a victim of any company or organization’s whims.  Feel free to make them aware of this the next time you are challenged with a policy or practice that negatively affects you. You have power and the responsibility to use it.

FEED TWO BIRDS WITH ONE SEED

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.


I’m sure you all have heard and used the phrase “kill two birds with one stone”.  I have a friend who felt that idea was too violent, so she replaced it with “feed two birds with one seed”.  You can apply this idea to your tax bill. 

Most of us don’t give much thought to taxes until tax season.  In doing this, we could be cheating ourselves out of the opportunity to keep more of our money.  Do I have your attention?  Understanding how to use tax credits and tax deductions can make quite the difference in the amount you owe at the end of the year. 

The term “tax deduction” is widely used but sometimes not fully understood.  A tax deduction is based on the rate you are taxed.  For example, let’s say that you are in a 25% tax bracket.  If you have a $1,000 tax deduction your savings is based on this rate. Your savings on the $1,000 deduction would be $250.00. 

A tax credit is a dollar for dollar savings.  If you are entitled to a $1,000 tax credit you will save $1000 on your tax bill.  You have “fed two birds with one seed”.  Some tax credits are standard and available from year to year, while others are temporary.  Make the time every now and then to use the internet and search for new tax credits, especially if you are making a large purchase or repair to your home. Save all your receipts for major purchases. Don’t be timid about asking questions. You have the power to change your financial situation by keeping more of the money you make.   

Monday's Entrepreneur: Sonja Bowman and Loving Sentiments

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.

          Are entrepreneurs born or made? In Sonja Bowman’s case one might answer “both”.  As a child she would save her candy and sell it back to her mother.  By third grade, she was selling candy to her classmates.  By the time she was in high school, she had earned the nickname “Candy” and was pulling in about $150.00 a week. Sonja’s strong work ethic followed her throughout college where she maintained 21 credits and 2 part time jobs.

 

Upon receiving her degree from Bowie State University in Accounting and Finance Sonja embarked on her career in the workforce.  Working for the government and in the private sector kept her busy but she maintained her creative stream of income with her gift basket business.

In 2007, Sonja began her ministry, delivering the Word of God as she was “led to do”. She also found a product that she liked, aroma beads. With a winning smile, and charismatic demeanor, she built an extensive customer base. Her customer demand was so high that she eventually had to bypass her supplier. Then in 2007 she suffered a career ending accident. During an ice storm she slipped and fell, injuring her neck, back, and pelvis.  Sonja’s injuries were so severe that she spent the next three and a half years heavily medicated and unable to sit or stand for more than 5 minutes at a time.   Doctors at Johns Hopkins wanted to avoid surgery so it took extensive rehab and prayer to regain the full use of her limbs.

            Sonja had just met her second husband who she credits with being an amazing support system. She says Brock has “always been supportive in everything I’ve done. His support helped center me and help me find my passion and tap into all the things I enjoy doing.”  Entering her fourth year of unemployment, Sonja had revamped her gift basket business.  While attending a conference a product caught her eye. It was a Bible notebook.  She went home and prayed for “Daddy” (as she refers to God) to teach her how to make journals.  She was told how to make them and what scriptures to include. Since that time Sonja has created well over 100 different journals in three different styles.

They can be personalized to order for loved ones, groups, organizations and conferences. Her journals are so popular, they will now be offered in John 3:16, a Christian bookstore in Lanham, Maryland.

       When asked what she wanted people to remember Sonja, replied ”Your gift will make room for you. When you are in His will and following your purpose, provisions will be made.” For more information contact Sonja Bowman, owner of Loving Sentiments at sturner_1908@yahoo.com or sturner1908@gmail.com    

Dimes make Dollars

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from J. S. Aikens.


One of my favorite sayings I heard from my mother is “Pennies make dimes and dimes make dollars.”  This applies whether you are making money or spending it.  In my last blog we figured out where our money was going.  If you followed the instructions from the $1 solution you know exactly where your money is going.  Based on what you found, you want to decide where you want your dimes to go.  And if you’ve found you don’t make enough dimes we need to figure out where you can get them.

Get dimes when you purchase.  If you’ve noticed, there are plenty of sites from which you can print coupons.  How many dimes can you save when you buy?  Take the time to print coupons.  If there are items or experiences you already use/enjoy regularly, clip or print out coupons for them. Now when you look at those receipts, take a tally of the dimes you’ve saved.

Get dimes from what you’ve spent.  During a holiday season a few years ago, I bought several roles of Christmas wrapping paper from a couple on Craigslist. The couple who sold them said they had earned roughly $19K that year by selling items they didn’t need on craigslist. I have never forgotten that couple. I realized that they had recycled their purchases. How many times have you thrown away something that someone else would pay a couple of dollars for? You don’t have to sell often or online, but make the decision to recycle what you’ve already bought. Make a simple spreadsheet.  These “extra dimes” will add up to dollars. How will spend them?   

Protecting Yourself Against Financial Scams

Personal Finance 4 The People is pleased to team with others who are able to share their expertise in various areas. We hope to combine our efforts to bring a greater financial effort in order to help you reach YOUR Financial Independence. Today's guest post comes to us from Karon Powell. 

Even the most experienced and knowledgeable person out there can become the victim of a financial scams.  What is a financial scam?  It is usually defined as deceiving someone for financial gain or in other words, any fraudulent scheme that causes you to lose money.  These types of scams range from investor fraud to home-improvement contractor fraud.  

One type of financial scam is identity theft.  This happens when someone else uses your personal information such as your social security number or bank account information to get credit cards, buy a home or raid your bank account.  A simple way to protect yourself from identity theft is to check your credit report regularly.  Once a year you are entitled to a free copy of your credit report.  You have probably seen commercials and advertisements for free credit reports but a credible source is located on the Federal Trade Commission’s website, just click the included link. Once you receive the report review it and follow the instructions to dispute anything that may be incorrect. Another simple way method to protect your identity is to shred any piece of paper that contains identifying information.

A second type of financial scam is investor fraud.  There are numerous types of scams involving fake investment firms offering unbelievable returns on an investment of your hard-earned money.  If something appears too good to be true it most likely is too good to be true.  It can be really hard to pass up what appears to be a windfall, especially when the person or persons offering the “tip” are church members or people you trust.  Before giving someone your money do some research and do not give away any of your identifying information.  Most businesses must register with the Secretary of State in their area.   The Secretary of State’s website is a good place to start when investigating whether a business is legitimate.  In order to find out if there have been complaints filed against a business check with the Secretary of State for your area or the Better Business Bureau.

Most fraudsters count on the fact that you will not want to do the work involved with checking their credentials or that you are in the middle of an emergency and will not bother to do background research.  Fraudsters can target ethnic groups, religious groups and even a particular age group.  Educate yourself about the types of consumer fraud and do not be afraid to ask for credentials.  Follow-up on any information you are given such as registration numbers.  If the information is incorrect or out of date do not give your money away.  Keep in mind that it is your money at stake.  You worked hard for it so if you are going to spend it make sure that it is spent wisely.