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Archive for the ‘Credit Cards’ Category
Attacking Your Debt: What’s the Best Approach?
You may know the feeling: You’re at the bookstore and spy a wonderful new reference book that’ll help with your art….or you’re at the clothing store to pick out an outfit for an audition, and the perfect fit is just outside of your price range.
What’s a little credit card debt, right? You’ll be able to pay it off later. Hopefully.
Whether you took on debt by overspending on your craft, or your job doesn’t pay enough, debt is a weight that’s hard to relieve. That said, getting rid of debt is the first step when creating the  Abundance Bound mentality. According to financial site NerdWallet, the average household in the U.S. carries $15,422 in debt. Ouch. More meaningful is the fact that once people have debt, they’re likely to use credit more and more often. The flip side? 53.3% of the American population carries no debt at all.
We can’t solve the American debt problem, but we certainly can help add you to the 53% without debt, can’t we? How should you pay it down?
Much has been made in the financial press lately about how you should attack your debt. Researchers recently concluded that often what people think of as the smartest option hasn’t been the most effective way to pay down debt. Let’s look at two popular methods and review why you might want to choose the sub-optimal method to pay down your debt.
The Mathematically Sound Method To Pay Debt
If you want to take the fastest path to debt relief, and can stay on it, here’s the obvious solution: (more…)
Posted in Credit Cards, Debt, Uncategorized | No Comments »
Posted by Miata | February 8th, 2013
Don’t taxes stink?
While I love the promise of a new year, the threat of an upcoming tax season is absolutely exhausting! I think we creatives have it doubly bad; we work from the energy of bending rules and pushing boundaries. There are no bendable boundaries or rules with the IRS. Instead, it’s a simple game: do it right, the first time, on time, and you win. Everything else is unacceptable.
 I tensed up writing that!
So, my goal at tax time is to control the amount of time and energy I have to spend on this task. If I can get my taxes filed and paid quickly and accurately, that’s about the biggest win I can imagine.
How do I do it? I’ll share with you some secrets that hopefully will make your tax season a little less stressful so you can focus on your art and not on April 15th. (more…)
Posted in budget, Credit Cards, Daily ProsperiTIP, Debt, Financial Planning, Goals, Mindset, Taxes | No Comments »
Posted by Miata | January 24th, 2013
I know Halloween was last week, but let’s keep the fun alive with some financial horror stories. Didn’t you love horror stories as a kid? I liked them…until I tried to sleep. Then, more often then not, I spent the night staring at the ceiling, sure that at any minute some disconfigured arm would grab me from under the bed.
The bad news is that we all have friends who have real life financial horror stories. Their money problems make it difficult to sleep. Maybe you have those issues. There’s good news: many of these horrible stories we can fix simply by turning on the lights: if we know they’re out there, we can avoid them or find ways for them to vanish:
Horrible Story #1) There once was a man who paid an annual fee on his credit card! There’s no reason to pay annual fees for cards unless you’re a high-powered user. Too many cards are available with no fees that still give you a low interest rate and reward points. Only pay fees if you find a card which you are certain will be justified by the rewards that are unavailable from a non-fee card.
Tip: Use online comparison sites to determine which card best meets your needs without paying a fee. (more…)
Posted in budget, Credit Cards, Financial Planning, home ownership, Income/Expenses, Internet Shopping, money plan, Saving Money, Taxes | No Comments »
Posted by Miata | November 8th, 2012
Interest rates are low. Most of the time it’s wise to ignore anyone who tells you “you really need to….”, but believe me, you should check the interest rates of all your debt before interest rates rise.
…and when are interest rates going to rise? That’s the problem; I don’t know. Therefore, I recommend you do it right now.
Before We Begin 
Make sure you read my post from two weeks ago: How to Take Advantage of Low Interest Rates. It lays out the simple steps to check your credit. You don’t want any surprises if you end up filling out applications to lower your interest rate.
Today, we’ll focus on three areas: your home, auto and credit cards.
How to Refinance Your Home
1) Compare rates through several lenders. This is done easily through a mortgage broker or an online comparison site. While many lenders appear to have different rates, you’ll find those with lower rates generally have higher fees. On the inverse, those with higher rates often have lower refinance costs. Generally, I prefer lower cost mortgages (which often means a slightly higher rate).
2) Gather information about each type of mortgage. Home lenders offer two basic types of mortgages: fixed or adjustable. While there are many iterations of each type, here are some you’ll see regularly during your search:
a) A basic fixed rate mortgage comes in a 15-year and 30-year variety. Usually, a 15-year mortgage will have a slightly lower interest rate than a 30-year option.
b) Adjustable rate mortgages often keep the rate stable for 1, 3, 5, or 7 years, before changing. Usually the rate will change annually after the short fixed period.
(more…)
Posted in Credit Cards, Debt, home ownership, interest rates, Saving Money | 1 Comment »
Posted by Miata | February 23rd, 2012
Ah, late January… a time of colder temperatures, snuggling around a warm fireplace…and December’s credit card bill waiting like a bomb in your mailbox.
Nightmare!
Did you overspend during the holiday season? If not, many people you know made up for you. According to this Bloomberg Businessweek article, consumer debt rose more in November of last year than it had in 10 years.
Although analysts call this a “good sign” for the economy, doesn’t this statistic frighten you? Weren’t we just talking recently about many people losing their homes because of too much debt? People in the arts, especially, shouldn’t take on debt they can’t afford. In many cases, our income streams bounce around enough that we shouldn’t be spending next month’s paycheck that may never arrive.
But, if you overspent over the holiday season, there’s nothing to do now but clean up the mess. It won’t be easy, but with a good plan and the right tools, you’ll be back on your financial feet in no time. Here are my four steps to curing your credit card hangover: (more…)
Posted in budget, Credit Cards, Debt, Goals | No Comments »
Posted by Miata | January 26th, 2012
 Honing a craft is a solitary activity. Excellence means many hours out of the spotlight, so that once you’re finally ready for prime-time, all of the finer points of the work are complete. To your audience it’s effortless; you’re a pro.
Unfortunately, this “solitary confinement” approach to excellence often clashes with successful money management. The government and business community are constantly revising rules that affect your ability to manage your money.
That’s precisely what happened late last month. A new credit card law went into place that has the potential to have a devastating effect on some artists. I thought I’d give you my take on the rules and some ideas of how to respond, so that you aren’t surprised the next time you apply for credit.
Here’s the part of the ruling which could derail your planning: you can no longer use spousal or overall household income to apply for credit.
What does this mean for artists? If you’re working full-time (or near full-time) on your craft, your income may not yet be where you’d like it to be. First, you may be spending money that counts against your income, lowering the amount you can claim. Or, you may be still building skills to make money later. In either case, you may now find it difficult to secure credit in your name. (more…)
Posted in Credit Cards, Newsletters | No Comments »
Posted by Miata | November 3rd, 2011
 Last week, an old friend called to meet for lunch. I suggested we try a comfortable mid-priced place with a patio, but she insisted on one of the nicest restaurants in town. Arriving, I couldn’t help but notice that her car was worth about double mine. She was dressed from head to toe in designer clothes and sported a pair of sunglasses I suspected cost so much that I’d be far too nervous to wear them. I was surprised to see how much money she’d apparently made, and mentioned it when we sat down.
“My students would love to know your secret,” I said. “You’re obviously doing really well. That’s fantastic.”
She sat back and sighed. For the first time since we’d met, I saw how tired she appeared.
“My secret,” she laughed, “is that I’m in over my head. That’s why I wanted to meet you. I’ve got to get my sanity back. The credit card debt is killing me.”
Needless to say, I was shocked. Nothing that I saw in front of me was the truth.
I understand the desire to appear successful. It’s important to project a confident image with our peers and potential clients. But spending money that we don’t have only makes things worse. Here’s how: (more…)
Posted in Credit Cards, Debt, Newsletters | 1 Comment »
Posted by Miata | July 28th, 2011
 It was about 10 years ago that I reached a breaking point in terms of money. I had lots of debt, an almost empty bank account, and just getting the mail would bring me to tears because of all the bills I had just received and I wasn’t sure how to pay. If something didn’t shift, I was pretty certain that my pursuit of an acting career was over, not to mention the fact that I’d probably have to move back to NJ to live with Mom and Dad…
Fast forward 10 years, and every single time I begin working with a new client, the biggest thing I want them to know is that I understand how they’re feeling. It’s pretty rare to find someone in a situation much worse than mine was. The work and solutions I teach are not empty theories. I know first hand the financial journey you are on as a creative soul, and my mission is to give you the tools that will work for you and your artistic lifestyle.
The first question most artists ask when feeling that sense of financial overwhelm is: Where do I start? And the answer, while not always easy, IS simple. You start at the beginning. The very first step to meeting your financial goals is clearly defining where you are right now. This anchors your direction and allows you to easily gauge your progress.
There are two layers to creating that clear picture of your starting point. The first is the determination of your Net Worth. To arrive at this figure simply add up the current dollar value of your Assets (“what you own,” such as a car, home, investments, savings and cash accounts, jewelry, etc.), and subtract your Liabilities (“what you owe,” such as the car loan or mortgage remainder, students loans, credit card debt, etc.).
The next layer, factoring your Average Monthly Profit & Loss (also referred to as monthly Cashflow, or P&L), will require more time and effort, but is a critical element in understanding your financial baseline. In basic terms, your P&L equals your Income minus Expenses, or the precise amount you earn each month — from creative work, residuals, “job” jobs and/or side businesses — minus what you spend. As an artist, how do you pinpoint your P&L when income arrives from a variety of sources at random intervals and one month may differ wildly from another? The solution is to average our earnings and spending habits over a six month period. This will capture such variations and reflect all those “special, unforeseen” costs that don’t surface every month. Subtract the total of your average expenses from your average income to figure out your P&L. If this number is positive, you’re earning more than you’re spending; if it’s negative, you’re “in the red.” Your Average P&L, most accurately predicts your money lifestyle in all months.
Your success depends on the clarity of your P&L and Net Worth numbers. Armed with your true starting point you’ll be able to set concrete goals, determine milestones, and map a course for the future.
If you can use some clear guidance and accountability to take this critical step towards financial stability – check out Artist’s Prosperity 101. This is a powerful program that will guide you through each element of defining your personal financial starting point. In just 4 weeks you can have the control that comes from clarity – positioning you to stop surviving and start thriving!
When I started this process – more than anything I wanted clear direction. “Just show me exactly what to do.” Can you relate? Well, Artist’s Prosperity 101 does just that. You’ll get all the information you need in simple, manageable chunks so you can do what you need to do but never get overwhelmed.
Ready? Go!!!
Posted in artist's prosperity system, Credit Cards, Goals, Income/Expenses, money plan | No Comments »
Posted by Miata | June 9th, 2011
 I pulled my car into a garage to have the oil changed this week. I realized during this process how closely some of these financial topics mirror auto repair jargon. Sometimes it takes all of my acting experience to pretend I know what a mechanic means when he’s explaining the difference between types of oil. I’m terrified he’ll recognize me as the not-sure-where-the-oil-goes person I am, and suddenly the cost of my car repair magically skyrockets.
As I’m smart enough to realize that there are auto-related facts I must know to keep my costs down, it’s similar with some financial concepts. One number may save you more money than any other in your financial life. It’s called a FICO score. This number tells lenders how reliable you are with payments to debt. People with high credit scores are offered lower interest rates to borrow. They’re also often given better repayment terms.
Knowing your score became more important than ever a couple months ago when Bank of America changed their fee structure. (more…)
Posted in Credit Cards | No Comments »
Posted by Miata | May 5th, 2011
 Owwww!!! You spend and I suffer??? CONGRESS appears to be nearing a fight about debt. I don’t want this to be a political discussion, but often current events can help us look at our own financial picture more objectively. Some members of Congress assert that they will not allow the United States debt ceiling to rise. Others, recognizing the huge gulf between the amount of money available and the amount that needs to be cut in order to balance the budget, seem willing to talk about cuts but want a more reasoned approach. However it ends, this fight is long overdue. Imagine if you managed your financial house this way, constantly adding new debt without a plan to repay it?
Long time readers of this newsletter know that I’m on a mission to free the creative community from the pain and stress of out of control debt. I’ve watched more people’s dreams crumble under the weight of debt than from stock market declines or rising health care costs. Debt can bring a person to her knees quickly. Just one more credit card can be the tipping point between financial solvency and ruin.
But what happens when you must take on debt? What if there is no other way?
(more…)
Posted in Credit Cards, Debt | No Comments »
Posted by Miata | January 13th, 2011
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Abundance Bound mentality. According to financial site NerdWallet, the average household in the U.S. carries $15,422 in debt. Ouch. More meaningful is the fact that once people have debt, they’re likely to use credit more and more often. The flip side? 53.3% of the American population carries no debt at all.
