Give A Tip Get A Tip

I started this blog to give my readers tips and tricks about personal banking. I had several clients who found my advice very useful. I gave them ideas and showed them how to improve their personal banking. For that, I am very proud. I’m good at my job, and although it might seem funny to some, I love giving advice on finances. When I start chatting about this topic, you realize that I know what I’m talking about. I go through every detail, and my advice is always based on a pretty large real-world experience. Some clients might find my approach to be very direct, but I don’t fool around when it comes to finances. I give it to you straight, whether you like it or not. During my working experience, I’ve found that being direct and not sugarcoating is the best way to avoid wasting time and energy. Especially mine.

In my line of work, I’ve created some enemies, not gonna lie, but I’ve also created many friends – good-hearted people who recognize my efforts and want to do their best to give me some helpful advice. Although I love to give advice, taking advice is not my strong side. It’s hard for me to recognize that I also sometimes need help.

My son and I live in a house close to a building site. This place is with old houses, but now the local government is turning it into some shopping area. There’s a lot of dust almost every day, and although I love this house, I’m thinking about moving. I’m afraid that the polluted air is not good for the health of my son. But, a while ago when I helped a client with his finances, he noticed that something was bugging me. When I told him what the problem was, he told me that he had experienced something similar. “There’s a solution”, he said, “your son’s health is not in danger, but the thing you need to figure out is how much you love your house”. He recommended I buy an air purifier. “That way”, he said, “you can have fresh air in your house and a happy son”. After doing some calculations, I realized that this will be the optimal solution. I was ready to move, but I accepted the advice and now I’m home and I’m happy. I have given so much advice during my professional career, it was about time for me to accept one.

Credit Cards or Smartphone Paying: Safer than Swiping?

Today’s burning question is whether you want to go with using your smartphone or stick with your old credit card. The debate is still raging from New York to LA. However, it is the wave of the future and it is best to find out more about what it is and whether or not you want to try to use it yourself.

America is already behind with the rest of the world that has embraced and switched to E-payment in a big way. China has gone almost entirely cashless as their new generation of Millennials shop almost exclusively using their cell phones.

Here in the States, however, we are still reluctant to let our money be controlled by a tiny NFC chip within our smartphones. The big promoter of this, of course, is Apple as they have included the special chip technology inside their latest generation of smartphone. Their only serious contender was Samsung and they have run into a brick on the road as their batteries have a tendency to explode in the new generation of smartphone they have just released. So, Apple has the infrastructure and clear sailing to take a large chunk of the market share while Samsung retools and retrenches.

But, what exactly will these chips do for us? The simplified answer is that just like your credit card you can walk up to any vendor, store, and even restaurants. You flash your cell phone, the transaction is completed all painlessly, and you don’t even have to take your wallet out of your purse, hip pocket, and backpack.

The greatest fear, of course, is the hacker. WikiLeaks has been bombarding us over the latest malfeasance of Hillary and the rest of the world. However, you have to remember these servers are running on Microsoft operating system, which is notorious for leaving loopholes and gaps in their coding.

Apple, on the other hand, is based on their iOS operating system, which is proprietary and one of the hardest to crack in the business.

Therefore, aside from the hardware aspect, Apple has invested a great deal of money in the infrastructure and the protection of their user database.

However, the one thing that I like the most, that has sold me on the idea, is the secondary authentication. For example, your credit card now requires a signature and away you go after making your purchase. The problem is people have gotten sloppy and with the “Swipe and Go” technology anybody can walk up with a card swipe and enter a pin number, walk away, and no one even checks to see if the card belongs to the person who’s using it.

Though the same is true of a smartphone people are quicker to react for some reason if they cannot put their hand on their cell phone. While sometimes, it takes days or even weeks for people to notice that they’ve misplaced a card.

Also getting into a smartphone is getting harder and harder than it is to peek over the shoulder of someone while someone is entering their pin number.

But, the bottom line that is driving the shift from credit card to a smartphone is simplicity and simple economics. Getting people instant gratification and streamlining credit card billing and payments along with saving all that wasted plastic going back and forth in the mail makes life so much easier.

So the handwriting is on the wall and the credit card will soon only be seen in museums and talked about as the woe of the middle class during the 90s, 2000s. Kids today, are not even sure what a credit card is anymore. After spending 20 years in the banking industry, it’s high time we put the credit card out to pasture.

Dora L signing off, until the next time, where I will offer you up another tidbit about managing your money and ways to keep more of it.

The Unglamorous Side of Homeownership

Personal finance is my forte and I have to remind you that it can pertain to the most sophisticated investments to the rather mundane. Part of family finance is to take care of the needs of one’s home and to allocate funds for repair and upkeep. I also counsel people not to procrastinate as it can result in a greater outlay of money when conditions deteriorate. Take my own problem: I had a dripping kitchen faucet and hesitated to hire an expensive plumber. I waited for a couple of weeks until the leak had grown to a virtual rush of unwanted water. I got on the phone in a jiffy. Of course, he fixed it in no time but he said the leak had caused the main pipe to corrode and now he had to replace it at considerable cost. I wish I had not waited. I hadn’t taken my own advice to handle broken household things promptly so they don’t cost more money in the long run. Homeownership is a big topic for my lecture series and it covers equity, mortgages, interest rates, and the like. But there is an unglamorous side of it to be sure. To mix things up a bit, I throw in a few stories like my kitchen faucet to make the point.

Any household budget can be taxed by home repairs and the older your home, the more likely you will encounter the need for on-going maintenance. Sure, we all wish we could buy new construction, but such is not the reality of real estate. There are holes in roofs, possible floods, and consequent mold. Your garage door stops working and the patio cover falls down. New carpet comes every five years as well as new kitchen appliances. Have you priced a good refrigerator or stove lately? You better set money aside. They say to replace your mattress every eight years, but it might be that long before the toilet conks out. It is fun to get upgraded things to make your home more attractive and comfortable, but don’t get blindsided. Start early to save for a rainy day as they say. Don’t ever wait for the last minute or you might have to come see me for a bank loan. I will be waiting to help.

Bank loans are not always easy to obtain but it is possible that they can be used for major home repairs. If you want to put an addition on to your home, replace the roof, or landscape the backyard, it runs into some significant money. But it adds value to the property when it comes time for resale, but it is also worth doing if a profit is your motive. Otherwise, a dilapidated fix-up home draws fewer buyers. Everything relates to everything else in the world of banking and personal finance. Get counseling if you feel at sea in this mysterious realm.

Tips to Avoid Bank Fees

Hello dear, this is Dora L again.

Many people have sent emails to me wanting to know why is it on their bank statement they keep getting all these extra added on fees and charges. It’s quite simple honey, the banks are in business to make money and they will do whatever they can to squeeze as much of it out of you as possible. You must understand a bank is not your friend. They want your money and as much of it as they can possibly get. However, we can minimize this with a few little tips.

  1. Get credit card payment protection. If you miss a payment or are late, your benign 0% credit card can go up to a whopping 16 to 21% monster that you will find can be an anchor around your neck and drastically affect your lifestyle. Most people never read the fine print on their credit card application and they blithely sign it and think nothing of it. In fact, can you put your hand on the paperwork they came with your credit card? No, I didn’t think so. Most people throw it away right after they pull the card out. This is all designed in how the paper is folded, lettered, and colored. It is created specifically to make it as unreadable as possible so people won’t take the time to do it. This is one of the biggest moneymakers that credit card purveyors use to pad their bottom line.
  1. One of the worst things you can do is pay the minimum amount on a credit card. That and paying on time are two ways to either landing you in the poorhouse or end up paying on your credit card for the rest of your life. Download a financial calculator of your choice and go through the formula that is plainly written up for you. You will see that you never pay off the principle all you are doing is paying off on the interest. Moreover, if you pay on time you’re already being docked interest payments.Your best bet is to pay early and double the minimum amount if you can. In this way, you pay down the principle and prevent the interest from increasing the amount of money you owe.
  1. Do all your banking at an ATM that belongs to your bank. Do not go to a teller window. This is another little “Oh by the Way” that banks use to suck your money out of your wallet or purse. You are hit with a fee for just asking a question of a teller. You also get charged a fee if you use any other ATM than the one from your bank. Most of you should already know this but you would be surprised how many people want to talk to a teller about every little thing having to do with their account.

George is calling me, my favorite TV show is on. NCIS and Leroy Jethro Gibbs, even though he’s 70, still gets my blood pumping. So, until next time this is Dora L signing off.

Not My Best Doctor’s Appointment

Sometimes you have a humiliating experience that you would like to forget. I don’t mean when your PowerPoint presentation conks out and you can’t seem to get it back on. I mean a trip to the doctor’s office for a checkup when the physician notes a gain in weight and makes a comment. You know why as you glance down at the body fat scale in the office. You jump off quickly and hope to wipe away the memory in time. But it is a sign that something must be done and that is going to be a new program of diet and exercise. The doctor sets a plan that you can easily follow. He counsels you to see a nutritionist if you have concerns. The point is to take action immediately to get back your health. Overweight causes many problems and potential diseases that can eventually tax your health budget. Most people haven’t saved for such an occurrence.

The nice thing about this situation is that you can remedy it in no time at all. If you are conscientious about your regime, you will get back to an optimum weight and that body fat ratio will change. Life goes on. People don’t often think about their health until they go to the doctor, and not even then. They write it off as normal or temporary, not something to worry about. Take my word for it and listen up. You can avoid the problems of old age if you start to take control now. But you also can’t discount the fact that people get heart disease and diabetes as a result of obesity in middle age. Obesity, of course, is the extreme, but I am trying to make a point. If you ignore your body fat, it may just keep growing. I know you are busy at work and with family obligations, but make time together to grab the reins of good health. There is nothing better than feeling in tip top shape. Your family needs you to be strong and reliable so don’t let them down.

If you don’t go to the doctor and haven’t a clue about your weight, buy a good bathroom scale and find out daily or weekly as you wish where you stand. Charts online will tell you what is normal for your age and height and where the danger zones lie. I love the scales that interface with your laptop.

There is a wealth of information that you can use to set personal goals. Get together with your family and discuss health. Take walks together, play games, go running in the park with the dog, or visit the gym. If you have a companion, you are more likely to stick with it. Keep notes and find out how long it takes to get back into shape. Spread the word. It can be encouraging for friends and colleagues and they may join you in the quest for good health.

Lovely Day with the Family

All of a sudden, you find that your kitchen appliances are out of date. It all seems to happen at once. It is just a matter of which one is on its last legs the first. This is any homeowner’s nightmare. Does it sound familiar? You have owned your home for a decade and everything goes to pot. What’s more, you haven’t saved enough for a kitchen remodel.

At best, you pick one appliance for replacement—and it is likely to be the least expensive. For me, right now, I want to get a new food vacuum sealer for my kitchen. Over several months, you find that they are all new and your bank account is sparse. So much for advance planning. I always counsel people to start day one when they buy a house and expect the worst. This way you will not be caught short. You are so taxed financially that you can barely afford a new electric knife. Speaking of this, I do have a good one and have allowed my son to learn to carve a ham. He loves the responsibility and is quite good at it. It makes me proud to see how grown up and mature he is now. The joy of a family is to watch it evolve and flourish.

Many of my clients have big families and while it is hard on the budget, it makes them supremely happy. The dinner table is full of conversation and the house is always laden with good cheer. Children bring such joy that it is immeasurable. The question is always to find the funds to give everyone what they want and need. What comes first? The kids or a new stove? It is a tough decision, but I often vote for family. Most times, new items are required and can’t be delayed. Use your common sense to help you master the maze of personal finance and learn how much to allocate to basic household categories. I know people who bought used appliances as a stop-gap measure until they could afford new ones. There is always a solution if you are creative.

A home is often the biggest burden on family finances. You must contemplate carefully when it is a good time to buy and if you need to spend a given amount to satisfy your long-term needs. If you stretch yourself to the limit, you will pay the price down the road. You can find a less expensive neighborhood even if it is not your first choice. Parents make decisions based primarily on neighboring schools and parks, but there are times when you want to give more direct attention to the actual house itself. More bedrooms means you can accommodate your family comfortably but it also adds to resale. If kids can walk to school, it is a big bonus. There are many considerations so don’t hesitate to consult a realtor or finance expert to learn all the ropes. No one has to go it alone these days with all the information available.

Finally Sleeping Better

I am a busy person, giving lectures and counseling people on banking and finance. I have to do a lot of research and keep up with a barrage of new information all the time. I must have my wits about me which means getting a good night’s sleep. When I get over tired, my brain simply doesn’t function. I blame my mattress, the night heat, street noise, and the like. Sometimes your mind simply goes over and over the events of the day in a monotonous sequence which prevents you from entering slumberland easily. I am not one to take potions and pills because I want a completely natural sleep. I listen to the experts and turn off the lights and the TV well before bedtime. I don’t read in bed anymore with my handy nightlight. I try to rid my mind of extraneous thoughts that intrude like poison arrows that pierce your body and keep you awake.

I had to have a better solution and so I asked around. People told me about melatonin, drinking warm milk, and eating turkey. Now that’s an odd idea but I will try anything. However, I don’t relish making a turkey sandwich late at night and going to sleep on a full stomach. I finally heard a better idea from a colleague at work. He bought a ceiling fan from this web site that wasn’t just to freshen and cool the air. It is already cold enough at night for most people. In actuality, it creates a kind of “white noise” that obliterates negative or impulsive thoughts. It helped him sleep better and surely it would work for her. You can also buy white noise machines, but the fan is also a nice décor feature and a source of illumination. You can use a dimmer and speed control to get it to operate as you like. If you want more white noise, then turn up the control to high speed and you will have it.

With the ceiling fan, I truly got my money’s worth. It does the job of lulling me to sleep and it is better than counting those boring sheep. You can buy them in various colors, finishes, and sizes to suit your room’s décor and it adds interest and appeal from a decorator’s point of view. Who knew that they create white noise. Most of us have never even heard of it. Kids like it as they often have trouble relaxing enough to pass out at the desirable bed time. If the idea of a ceiling fan is not a positive one, you can get it in white and it will fade away into the ceiling. Think of it first and foremost as a sleep aid and you will appreciate its existence each and every night. Certainly, it is healthier than sleeping pills that are addictive or even ineffective over-the-counter remedies that have suspicious ingredients. Take my word for it, a ceiling fan is the4 better choice.

Enjoying Retirement

Sooner or later, no matter your age, you start to think about retirement—those golden senior citizen years when you can enjoy travel or doing new recreational activities. Some people go boating, snorkeling, or riding in an inflatable kayak on the local river. It is interesting how much people think of the outdoors when they think of those post-work years. Enjoying retirement is easy if you plan ahead and I have always counseled clients to start young and build a nest egg when they have enough money left over for savings. Every household budget must have an allowance for the future. If there is an emergency, of course the money gets eaten up; but you must find a way to start an investment plan before too long. If you don’t have enough money in retirement, you will surely run out of money and have to live only on Social Security.

This, for most people, is not enough to afford the luxury of travel such water recreation in Tahiti. Make sure you give the subject some serious thought. I know that I have. My retirement fantasy is to go snorkeling in various hot spots around the world. I know that picturesque diving locations are ample. In fact, I am now making a list so that I can go to a different place each year. The first time I went snorkeling I felt pretty silly about it. The gear—the face mask, the tube, and the fins—are ugly and cumbersome. I soon got used to it and was thrilled that I had the time to explore the wonders of the depths. As you advance in skill and experience you can go further down to see what others often miss at the surface level of the ocean. You can buy better gear and hire a guide to take you to places that offer more of a challenge. You can get a camera and share gorgeous photos of undersea life with friends on Instagram. It’s a quick and easy way to make people jealous!

The point I am making is to try things out and find hobbies now you can pursue later in retirement. It comes before you know it. You have endless days to fill and some people elect to work part time. But most want a real retirement with all the perks and benefits. It doesn’t have to be water recreation but take my word for it that this provides more than a few hours of fun in the sun. You are outdoors in nature and will make many friends, fellow divers who appreciate what mother nature has to offer. Okay, you can learn to ski or ice skate if you like winter climates, but who doesn’t prefer warmth and comfort? I have selected my retirement activity and can attest to its many exciting adventures. There is something amazing about being under the sea and feeling that you are part of another world.

Another Session at the Library Today

People think they know about finance, but I have found their knowledge to be sparse. Thus, I enjoy educating the public with lectures at the library so the community can learn more about my specialty—home loans and related finances. These subjects touch most families, but they don’t give them much of their time. Thus, I offer regular sessions so I can reach more people in the vicinity. I have a prepared presentation with visuals in the form of PowerPoint. People relate to numbers, for example, when they can see them. Charts and graphs also make a statement and I spend time with my pointer explaining how they work. The idea is get people on the right track and to let them know that a home loan is not an impossible and overly lengthy process. It should not be as intimidating as it now is. Most bankers want to help you and are on your side.

My trusty backpack totes my laptop to and fro. It is padded so it protects my vital equipment. There is enough room for my pointer, my wallet, my car keys, and of course my mobile phone. I love all the zippered pockets that segregate things for easy retrieval. I found it after reading Backpacks Magazine. Who doesn’t like to be a font of information so I am upgrading and updating my lecture all the time as new data appears in the media. Banking is a popular topic and finance is universal. I am at the heart of the world’s economic universe. Finance as a subject is all-encompassing and can include the vast realm of investments of which there are seven: bank accounts, stocks or equities, bonds, real estate, currencies, commodities, and insurance. I know you are thinking that I forgot mutual funds. They are actually the same investments in a new wrapper, which is a pool of money managed by an advisor. So, I keep it simple and sane. You can get into hedge funds and the like, but they are just equities in new guide.

Finance can be sophisticated such as when I explain how interest rates work. It can also be mundane when I discuss the importance of a budget and overhead. Everyone must deal with finance if they have a job, are saving for their kids’ college education, or are getting ready for eventual retirement. If you ignore these important things and start too late, you will be caught up in “the run for the roses,” which means you are desperate to sock away enough for retirement and could run out of money in a short period of time.

When I put away my laptop and close the backpack, I know I am done for the day. I have played my part in finance education and I always hope it reaches the audience. Many people look mystified and others entranced. In any case, I think I have succeeded in my goal.

Will QR Codes Replace Credit Cards?

Dora L here with some more tips and tricks to getting more money into your pocket and out of the reach of the taxman and the banks.

All across Asia right now, QR codes are used on the Internet, at restaurants, and even vending machines. Here in America, it is almost impossible to write a check anymore. The world is shifting into electronic money quicker with each passing day. But, let’s look at the potential risks and benefits of switching to QR codes rather than using those fancy radio chips that Microsoft, Apple, and all the rest want to put inside your smartphone.

The way the system works in Asia is that you have an app loaded onto your cell phone that links to your debit card account. You then scan the QR code and it loads itself into your smartphones I do not claim to understand all the high-tech gobbledygook that goes behind all this. However, one of my exchange students showed me how it worked and you’d be amazed at the versatility and variety of products and services available with a touch of your finger.

The young people today are buying clothes, shoes, and anything you can possibly imagine on Amazon and Tao Bao. This has opened up one of the most lucrative and largest demographics on the planet with almost 300 to 500 million shoppers who don’t want the inconvenience of carrying cash or credit. I have seen test runs here in the States and it could be the next generation of shopping simplicity that you’ve ever seen. Fraud seems almost nonexistent and millions of college students every day receive a seemingly endless supply of boxes, envelopes, and packages.

The utter convenience of this is truly astounding if you think about. Your smartphone opens an entire universe of products, services, and food. A recent trip George and I had to Shanghai and Singapore show just how prevailing this is. We had to get a new smartphone and have with the help of our tour guide and one of George’s exchange students were able to shop in almost all the stores and even small mom-and-pop shops had stickers up with their QR code on it.

This means almost any smartphone does not have to have a special chip that could become obsolete with the next release of the cell phone. The only difficulty I saw was the fact that after a while, you have a plethora of different restaurants, major and minor stores, and not to mention the fifty-something restaurants we collected inside our cell phone.

The exchange student, who must have been a kung fu master, was able to flash through hundreds of different selections to find us how to buy a burger, Coke, and fries at McDonald’s. This greatly simplified our travels and we could keep up on our expenditures on a daily basis. It seems the Asians have leapfrogged over Apple and their ApplePay. This is by the way in almost all their banks as well so they are ahead of America with implementing Apple’s e-money system as well.

America needs to adapt to the world or it may be left in the dust.

Dora L here signing off as George wants to go out shopping. I do not want to miss this, as it’s a rare occasion.

An Even Trade

One innovative way to save money for the family budget is to exchange services, yours for theirs. Whatever job is in question will then be free and no costs incurred. This presupposes you have some skill or talent to work with, but most of us do, or at least someone in the family will do. The kids can even get into the picture. They can clean a neighbor’s pool, wash cars, rake leaves, sweep sidewalks and organize garages all in exchange for some particular service. Maybe your neighbor is a plumber or an electrician and you need repair. An adult can drive their kids to school or baseball practice, or even mow the lawn. There are myriad ways to barter for something. I know a family that has a vast vegetable garden and they trade their produce for all kinds of household help. People get creative when the budget is tight. They started the program when the father was out of work and it soon became a full-time enterprise.

Now what can I trade? I can help people with bank loans and counsel them how to speed up and facilitate the process. I did this for a handyman and got two hours of service in return. It was a fair exchange and I was thrilled. I wanted to help him and was glad I needed some household attention. I could easily have paid someone else, but why not do a favor for someone in need. I was greatly surprised that he brought an electric pressure washer and volunteered to hose off the dirty front of my house.

This is not something I would have thought of or ever have attempted myself. Not everyone has a pressure washer, but I soon learned that it is useful for many things. It wouldn’t be a bad idea to procure one for regular sidewalk and garage maintenance. There is always caked on dirt somewhere, including the car that had just gone for a country drive on muddy roads. I would recommend finding a place for a pressure washer in your family budget. It is going to be on my own. Most people think they are hard to operate for are too strong. They don’t know that you can adjust them the way you like from a light spray to heavy intensity. It depends on the project.

They also think they are expensive since they are more than just a hose. Not so. You can get them in hardware and building supply stores and online often at a fair, discounted price. Don’t let lack of knowledge deter you. This is an item most families will want if they own a home. It takes no time at all for a property to become dilapidated and dog-eared. Keep your home fresh and clean with a pressure washer that any family member can use. You don’t need a professional or a handyman by any means. Read the simple instructions, turn it on, and you are all set.

What Will Happen to Your Money in a Cashless World?

Dora L here, I have been thinking about the ramifications of what I’ve seen on my last vacation and what it poses to the American economy. E-money has swept the globe, it seems to be ignored or trivialized here in the states, and years away from what I saw abroad. Asia, India, and Europe have embraced electronic money, bill paying, and a cashless society.

This seems all well and good, but I worry about the world where governments, banks, and financial institutions can turn off your money with a click or a swipe. It used to be in the old days you could bury a trunk in your backyard filled with cash and in 20 years you could dig it up and the money would be just as good as it was the day you buried it. Nowadays banks are getting finicky about accepting money that is only a few years old, as it doesn’t have the new anti-tampering, exotic coloring, and all that other stuff that supposed to stop counterfeiters.

The justification for all this to switch to e-money is to protect you from these things and allow you quick access to your funds. However, on the flip side of the coin, it could also be another form of tyranny and control. Let’s face it with the globalization of world markets and the upcoming vote on the Trans-Pacific Partnership, money will be obsolete in a very short number of years. This gives governments’ greater control of what goes into our pockets and the value of what now is just digits under an account number. Hillary has said that the TPP won’t go into law under her stewardship. However, WikiLeaks paints a different picture. This has a direct effect on all Americans bottom lines as many of the things that are being incorporated into these trade agreements is the lowering of wages and the simplification of control over money.

The value of currency can shift almost instantaneously via the new generation of Quantum Computers and the High-Speed Networks that are going into place to connect major banking centers all throughout the Pacific Rim and the rest of the world.

Diamonds used to be a way to hide and store wealth, as it is low weight and bulk. However, with the laser tagging system, any diamond that doesn’t have a serial number on it is automatically categorized as a “Blood Diamond” and therefore is not sellable on the open market.

With this new e-commerce, any money global system coming online governments will know exactly how much money you have and where you have it. This seems like we are giving up a lot of our privacy and freedom in order to make commerce more lucrative to those who own multinational companies.

These are just some musings from an old woman who’s worked in the financial field for over 20 years and still likes the feel and the clinking sound of coins moving from one hand to another.

Dora L here, signing off as I hear the doorbell and George, s pizzas (two large sausage, mushroom, and cheese for him and me and one large garbage pizza for the grandkids) and if I want to get in a few slices of my own and now have to hurry as the NCIS marathon is about to begin.

How to Find a Good Interest Rate?

Hi, this is Dora L again.

Today, we’re going to talk about interest rates and some tips on how to get a good one and not be taken to the cleaners. Since the 2008 financial meltdown, banks have been holding onto their money like Scrooge McDuck sits in his vault guarding his cash. So, it’s no wonder it is harder and harder to get a home loan or loan for anything else. But, there are some tricks and tips that can make things simpler.

  1. The first rule is of course shop around. This may be a bit wearing on your shoes but it can save you thousands of dollars in the long run, which can buy you an entire closet full of fashionable footwear. This means of course that you check with credit unions, banks, and mortgage brokers as well. You can also shop around on the Internet and see what your favorite search engine delivers to your screen. However, doing it this way can possibly confuse you more than help you.
  1. Which is why I recommend you get a good basis of doing the math on figuring your interest and loan. So downloading a financial calculator is a prerequisite before you go out the door.
  1. Another option to get a good deal on a good interest rate is to watch the stock market. Banks get nervous when the stock market tanks and they’re afraid they might lose money when the stock market goes up. Why and how this happens is a mystery that perhaps Warren Buffett can explain. However, I only know is that when there is a sudden shift in the market interest rates change dramatically almost overnight and if you are paying attention, you can lock in a rate that is much lower than if you wait a few more days.
  1. Please, please avoid choosing an adjustable-rate mortgage (ARM). Look at what almost destroyed the banking industry along with the housing market back in 2008 happened precisely because people bought in at a low-interest rate and forgot that in a short period of time 4 to 5 years the rate would then go up to whatever the market would bear at the time. This took $300 monthly mortgages to $3-$4000 monthly payments.

This is all due to people not reading their mortgage contracts and especially the fine print.

  1. By the way, another tip, READ all the documentation on a prospective loan/credit card and its interest rates. If you cannot understand what it is saying, it behooves you to hire a lawyer and have everything explained to you in simple English. Yes, I know lawyers cost an arm and a leg today. However, you can save thousands of dollars in interest payments by understanding exactly what they’re asking for before you sign on the dotted line. The reason why they have fine print is that they do not want you to read these things. This has caused more bankruptcies and foreclosures that I can possibly relate to you. People, today want instant gratification and get their loan the next day. They cannot do that, however, it can cost them big bucks in hidden fees, charges, and changes in the interest rate based on how you go about making your payment.

Watch your interest rates in the stock market; do not go with an ARM loan. Get legal help in reading a mortgage contract or even a credit card application. In addition, along with this READ the entire document and understand it fully before you sign.

That’s it for today, the big clock on the wall says it suppertime and George gets cranky if he doesn’t get his dinner on time. So until next time this is Dora L wishing you well and I’ll be back soon with more money tips and tricks.