5 Ways to Boost Your

Financial Wellness

1. Creating and Sticking to a Budget

2. Insurance 101 – Are you Covered?

3. Understanding Credit Scores

4. Getting Approved for a Mortgage

5. Top 10 Grilling Tips for Summer 2017 (okay, so this isn’t a financial tip, but it’s helpful!)

Prepared Especially for Participants of the

First Annual Hoboken Wellness Crawl

INSIGHTS

Creating a Budget in 5 Easy Steps

Wish savings money was as easy as spending it? For 25 million Americans, living paycheck to

paycheck is the norm, but it’s risky and can leave you vulnerable to relying on credit to survive.

While setting a budget seems hard – sticking to a budget seems even harder! Here are 5 steps to

make creating and keeping to a budget easier.

1. Determine your goals, take home pay and other sources of income.

Goals are tough to talk about in any context but they will help you define your budget and

stick to it. Think about your long term and short term goals: backpacking through Europe,

buying a new TV, paying off your student debt, purchasing a home. Setting 1, 5, and 10

year goals will help you with step 2.

Your take home pay is your monthly salary after taxes, social security, health insurance,

etc. Any additional sources of income, like bartending or Uber-ing on weekends, should also

be included.

2. Understand your expenses; Use the 50/20/30 rule

You can get a good idea of your normal expenses by viewing your bank and credit card

statements from the last 3 to 4 months. Determine how much of your income went to

essentials (like food, rent, transportation), how much you saved or went to debt repayment,

and how much you spent on wants (happy hour, gym memberships, shoe shopping). This

will help you get a good sense of how you spend your money.

The 50/20/30 rule is a great tool to use when setting up a budget. Form a realistic picture

starting with your take home pay, and then calculate 50%, 20% and 30%. No more than

half of your take home pay should go to living expenses. About 20% should go into savings

(retirement and emergency funds) and 30% should go towards discretionary spending, like

weekend getaways and Starbucks runs. Keep those numbers handy when you get the urge

to splurge.

3. Automate your expenses and your savings

Automating your monthly bill payments can save you time and money. Setting up auto bill

pay with your bank is easy, convenient and puts you in control of the date the bill is paid.

Auto bill pay will prevent you from missing payments and save you money on postage,

envelopes and checks.

Side note: Don’t completely forget about checking auto-bill payment! You should still

monitor your bank account to make sure the bill is paid on time to avoid late fees and an

increase in interest rate.

On the flip side, open up a savings account (or one for each of your goals!) and then set up

automatic transfers from your checking account. Best practice tip: arrange for the date of

the transfer to be the day after you normally receive your pay – this way you won’t be

tempted to spend before you save.

4. Track actual spending – even what you pay for with actual cash

Ever get to the end of the month and wonder how all of your money disappeared? If you are

using cash frequently, that might be the culprit. Try tracking your cash spending by using a

financial diary. Write down everything you spend money on and save receipts as backup.

Alternatively, you can use a budget tracking app to help you become aware of your

spending habits and to stay on top of your budget.

5. Make adjustments when needed

There is no single recipe for success! Everyone spends differently, but it’s important not to

overspend. If you have higher than average debt, you may need to allocate more towards

savings and debt repayment for a while.

And while you’re trying to save money, try not to completely cut out social activities like

dining out and happy hour – it may cause you to overspend in other areas. Set a specific

amount of your discretionary spending to your social life and stick to the budget. It may

require you to cut back, but you shouldn’t have to cut it out of your life completely.

No one said saving money would be fun (or easy) but it’s definitely worth it in the long run.

With the right tools and a positive mindset, you’ll reach your savings goal in no time!

INSIGHTS

Get the Right Insurance

No one likes to talk about insurance, but if you wait too long to talk about it, it might be too late.

Whether you’re a 20-something or married with kids you’ll need a few basic kinds of insurance to

give you peace of mind. Here’s a quick guide to the four important types of insurance to keep you

covered.

1. Life Insurance – Term vs Whole Life

This is the last thing you want to think about, but knowing the difference goes a long way.

Life insurance isn’t just for those with kids – if someone cosigned a car or student loan for

you, you should consider life insurance, too.

Term life insurance is limited to a period of time, lower in cost, and designed to protect your

dependents in the event of a premature death.

Whole life insurance insures you for the whole term of your life (until age 100 or 120

depending on your policy) and provides money to your heirs to pay estate taxes.

2. Health Insurance

There are 3 ways to get health insurance – through your employer, the government or the

marketplace. There are two major types of health insurance: HMOs (health maintenance

organization) and PPOs (preferred provider organization). HMOs require you to stay in the

network when going to the doctor, and you’ll need a referral for a specialist. PPOs usually

cost a little more, but you can visit any doctor you’d like and you won’t need a referral for a

specialist.

Deductibles and copayments are equally as important when looking at insurance. A

deductible is how much money you have to pay before your insurance company pays for a

claim. A copayment is what you pay out-of-pocket upfront. Deductibles and copayments

vary depending on your insurer and your coverage, so it’s important to review that

information carefully.

3. Car insurance

It was hard enough deciding what car you wanted to buy, now you have to decide if you

have liability or comprehensive collision insurance. No one wants to pay for car insurance

but it’s illegal (and extremely dangerous) not to have it. Here’s a good rule of thumb: if

your car is newer, go with comprehensive and collision coverage; you’ll be protected against

things like broken windows, vandalism and theft. Most times, your car loan provider

requires this kind of insurance anyway.

If you purchased an older vehicle, you’ll benefit less from having comprehensive and

collision coverage so stick to liability insurance. It’ll save you tons of money.

4. Renter’s Insurance and Homeowner’s Insurance

You insure your health and your car; why wouldn’t you insure your home? Imagine you’re at

happy hour and you come home to find 2 inches of water all over your apartment from a

pipe burst. Renters and homeowner’s insurance help in emergencies like this by protecting

your possessions at the full face value of their cost, so you’re covered. Looking to save

money? Try bundling your home and auto insurance!

Insurance helps you now and in the future. A famous saying about insurance: “You never

need it until you do.” Do research on different types of insurance to find what’s best for you.

Because hey, life happen.

INSIGHTS

How to Understand Credit Score

Your credit score is a three-digit number that relates to how likely you are to repay debt. Banks

and lenders use it to decide whether they’ll approve you for a credit card or loan. But did you know

you actually have more than one credit score?

How credit scores are created

The three main credit bureaus – Equifax, Experian and TransUnion

– create your credit reports, which credit scoring models like

VantageScore and FICO use to come up with a score that typically

ranges from 300-850. The credit bureaus can also calculate scores

for you based on their own proprietary models.

Your scores are typically based on things like how often you make

payments on time and how many accounts you have in good

standing.

Your score will never factor in personal information like your race,

gender, religion, marital status or national origin.

Why you could have different scores

With so many ways to calculate credit scores, it’s not uncommon to

have multiple different scores at the same time.

You could have different scores if a lender doesn’t report to all three credit bureaus or reports

updates to them at different times. Some lenders may only report to one or two bureaus (or none

at all).

You could also have different scores depending on the lending situation. For example, an auto

lender might use one scoring model, while a mortgage lender uses another.

Scoring Models – what’s the difference?

Equifax, Experian and TransUnion collaborated to create VantageScore to offer more scoring

consistency among the bureaus.

VantageScore boasts that its 3.0 model can score millions more people than other models by

incorporating up to 24 months of past credit activity – including utility and rent payments where

available – which could open up more credit options to you.

VantageScore has three scoring models and FICO has many more, but they all generally consider

similar factors to calculate your scores, such as:

Your payment history

How long you’ve had credit

The types of credit you have (credit cards, auto loans, student loans, mortgages, etc.)

Your credit limits and how much of those limits you’re using

How much debt you have

Hard inquiries on your credit report

The bottom line: Your scores may vary, but they’re all based on the information in your credit

reports. Checking your reports regularly can help you see what’s impacting your score so you know

where you could improve.

Original publication:

https://www.creditkarma.com/credit-scores

INSIGHTS

6 Tips to Get Approved for a Home Mortgage Loan

Some people don’t know the first thing about getting a mortgage loan. They hear reports of

dropping interest rates and lower home prices and hastily decide to jump into home ownership. But

the process of getting a home loan differs from getting a car loan or renting an apartment, and

applicants who don’t recognize these key differences are often disappointed when a lender denies

their mortgage loan application.

Educating yourself is key, and there are a number of ways to avoid this heartache and

disappointment when applying for a mortgage loan.

Getting Your Mortgage Loan Approved

Buying a house is already stressful, and being ill-prepared

heightens the anxiety. Why put yourself through this? Learn

how to think like a lender and educate yourself on the best

ways to get your mortgage loan approved:

1. Know Your Credit Score

It literally takes a few minutes obtain your credit score. But surprisingly, some future home buyers

never review their scores and credit history before submitting a home loan application, assuming

that their scores are high enough to qualify. And many never consider the possibility of identity

theft. However, a low credit score and credit fraud can stop a mortgage application dead in its

tracks.

Credit scores and credit activity have a major impact on mortgage approvals. According to the

Home Loan Learning Center, a large percentage of lenders require a minimum credit score of 680

(620 for FHA mortgage loans) – and if your score falls below 680, lenders can deny your request

for a conventional mortgage loan.

In addition to higher credit score requirements, several missed payments, frequent lateness, and

other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower

your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and

fixing errors on your credit are key to keeping up a good credit score.

2. Save Your Cash

Requirements for getting a mortgage loan often change, and if you are considering applying for a

home loan in the near future, be ready to cough up the cash. Walking into a lender’s office with

zero cash is a quick way to get your home loan application rejected. Mortgage lenders are

cautious: Whereas they once approved zero-down mortgage loans, they now require a down

payment.

Down payment minimums vary and depend on various factors, such as the type of loan and the

lender. Each lender establishes its own criteria for down payments, but on average, you’ll need at

least a 3.5% down payment. Aim for a higher down payment if you have the means. A 20% down

payment not only knocks down your mortgage balance, it also alleviates private mortgage

insurance or PMI. Lenders attach this extra insurance to properties without 20% equity, and paying

PMI increases the monthly mortgage payment. Get rid of PMI payments and you can enjoy lower,

more affordable mortgage payments.

However, down payments aren’t the only expense you must worry about. Getting a mortgage also

involves closing costs, home inspections, home appraisals, title searches, credit report fees,

application fees, and other expenses. Closing costs are roughly 3% to 5% of the mortgage balance

– paid to your lender before you can seal the deal.

3. Stay at Your Job

I know someone who quit working seven days before she and her husband were to close on their

mortgage loan. I have no idea why, and unfortunately, it didn’t turn out well for them. They

weren’t able to close on their new home and they lost out on a great deal.

Sticking with your employer while going through the home buying process is crucial. Any changes

to your employment or income status can stop or greatly delay the mortgage process.

Lenders approve your home loan based on the information provided in your application. Taking a

lower-paying job or quitting your job to become self-employed throws a wrench in the plans, and

lenders must re-evaluate your finances to see if you still qualify for the loan.

4. Pay Down Debt and Avoid New Debt

You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the

less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as

how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio before

approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card

debt, the lender can turn down your request or offer a lower mortgage. This is because your entire

monthly debt payments — including the mortgage – shouldn’t exceed 36% of your gross monthly

income. However, paying down your consumer debt before completing an application lowers your

debt-to-income ratio and can help you acquire a better mortgage rate.

But even if you’re approved for a mortgage with consumer debt, it’s important to avoid new debt

while going through the mortgage process. Lenders re-check your credit before closing, and if your

credit report reveals additional or new debts, this can stop the mortgage closing.

As a rule, avoid any major purchases until after you’ve closed on the mortgage loan. This can

include financing a new car, purchasing home appliances with your credit card, or cosigning

someone’s loan.

5. Get Pre-Approved for a Mortgage

Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially

responsible. On one hand, you know what you can spend before bidding on properties. And on the

other hand, you avoid falling in love with a house that you can’t afford.

The pre-approval process is fairly simple: Contact a mortgage lender, submit your financial and

personal information, and wait for a response. Pre-approvals include everything from how much

you can afford, to the interest rate you’ll pay on the loan. The lender prints a pre-approval letter

for your records, and funds are available as soon as a seller accepts your bid. Though it’s not

always that simple, it can be.

6. Know What You Can Afford

I know from personal experience that some lenders pre-approve applicants for more than they can

realistically afford. After receiving a pre-approval letter from our lender, my husband and I

wondered whether they had read the right tax returns. We appreciated the lender’s generosity, but

ultimately decided on a home that fit comfortably within our budget.

Don’t let lenders dictate how much you should spend on a mortgage loan. Lenders determine pre-

approval amounts based on your income and credit report, and they don’t factor in how much you

spend on daycare, insurance, groceries, or fuel. Rather than purchase a more expensive house

based on a pre-approval, be smart and keep your housing expense within your means.

Final Word

If you don’t meet the qualifications for a mortgage loan, don’t get discouraged. Instead, let it be

motivation to improve your credit and finances. Many people have risen above credit problems,

bankruptcy, foreclosure, and repossession specifically in order to purchase their first house. Just be

sure to implement a realistic plan and stick to it.

Original publication:

http://www.moneycrashers.com/getting-approved-mortgage-loan/

INSIGHTS

Top 10 Grilling Tips Take the guesswork out of summertime grilling and serve up the tastiest, juiciest dishes every

time.

Get to Know Your Grill

This might sound obvious, but it’s important to know as much as you can about the grill you’re

using. An electric grill, for instance, will give your food the barbecued ‘look,’ but you won’t get the

same smoky flavor you get from a charcoal grill.

Flavor It

When it comes to backyard grilling, there are several ways to

add extra flavor to your food. The quickest way is with grazes,

with are syrupy coatings often made with honey, maple syrup, or

molasses that are brushed on during the last few minutes of

grilling. Similarly, wet and dry rubs require little preparation

time. Apply these blends of herbs and spices (wet rubs

incorporate moist ingredients, such as oil, mustard, and yogurt)

up to a few hours before cooking to create a savory crust. To

more deeply infuse foods with flavor – tenderize them, too –

immerse them in marinades that are made with acidic liquids,

such as lemon juice, vinegar, and wine.

Add Smoke

Whether you grill over gas or charcoal, use hardwood logs,

chunks, briquettes, or chips to impart a smoky flavor to foods.

Different wood varieties add subtle nuances; try Applewood for sweetness, mesquite for tang, or

hickory for a bacon-like taste.

Create Heat Zones

On a kettle grill, bank goals in its center. Sear food in the middle, where heat is highest, then move

it to the outer edges of the grill to perfectly cook without burning. On a gas grill, leave one burner

on high, another on medium.

Get a Clean Start

Prior to grilling, scrub the hot grate with a long-handled wire brush. This keeps it clean – and

ensures neat grill marks.

Grease the Grate

Prevent food from sticking by brushing the grill grate with oil. Grab a small wad of paper towels

with tongs, then dip in a bowl of canola or vegetable oil and rub lightly to evenly coat the grate.

Keep It Separate

Use fresh plates, utensils, and cutting boards to prevent raw meat, poultry, and fish from

contaminating cooked food.

Get the Best Burger Shape

To give your burger that classic, round look, create an indent in the center with the back of a

spoon while you’re making the patty. The meat will rise in the middle of the burger as it cooks,

puffing it up to perfection.

Grill Kebabs like a Pro

Thread two skewers (or use a two-prong skewer) through each kebab to avoid the food from

moving around as you flip the kebab.

Use a Grilling Basket

If you love grilling corn, tofu or fruit, a grilling basket is a worthy investment. A basket keeps the

food safe from falling through the rack, and it doesn’t take away from the flavor.

Original publication:

http://www.countryliving.com/food-drinks/g550/top-10-grilling-tips-0708/?thumbnails