Did you know that you could have had money just waiting around for you to claim it? There are billions of dollars being held by state goverments going unclaimed. There are also lots (though probably not billions) of websites around that claim to be able to find it for you. To find this money, you don’t need a professional service, you can do it yourself.

Even if you’re budget conscious, there are all types of ways you could be owed money that you forgot or don’t know about:
Utility deposits, credit balances, store refunds
Uncashed dividend, payroll or cashier’s checks
Stock certificates, bonds, or mutual fund accounts
Life insurance policy proceeds
Undistributed wages
Checking and savings accounts
Gift certificates
Traveler’s checks
Safe deposit boxes
Royalty payments
Court payments or deposits

So why do people actually not claim money owed to them? Here is a list of reasons:
You have moved. Even if you left a forwarding address, moving is the number one cause of abandoned utility deposits and money in bank accounts.
You’ve changed your job status due to layoff, retirement or reassignment.
Your bank account has been inactive for more than 3 years.
You have stopped payments on an insurance policy.
You have an uncashed check older than three years.
You regularly throw away your mail without reading it.
An estate was settled for a deceased relative.

We all know how important it is to save and invest for the future, and we all know that most Americans are not saving enough. Despite the importance of saving for a rainy day, the devil is in the details, and finding the money to start a savings plan can be difficult, especially in the current era of high unemployment, rising gas prices and increased costs of living.

One of the most important steps in repairing and rebuilding your credit is having enough money should an emergency come up which comes over an above daily expenses: car repairs, medical costs, loss of job.

When it comes to saving money, it may be helpful to take a hint from Uncle Sam. Most workers in this country have their taxes automatically withdrawn from their paychecks, and as a result many of us never realize exactly how much we are paying into the federal kitty. The money is gone before it ever reaches our hands or our bank accounts, and over time we have simply learned to make do with what’s left.

Savers can use this same principle to put aside money for emergencies, large purchases and even retirement. By dedicating a portion of each and every paycheck to savings and investments, workers can learn to live on the remaining funds while building up a significant nest egg.

One of the simplest ways to get started is through direct deposit. Ask your employer to have your paycheck deposited directly into your bank account, thus avoiding the hassles of long lines at the bank and the risk of lost or misdirected checks. Many employers will allow workers to split their direct deposits between two or more financial institutions, making it easy for workers to dedicate a portion of their paychecks to a savings account or money market fund. Even in today’s low interest rate environment it is possible to find some accounts with attractive rates, and dedicating a portion of each check to savings that can help that emergency fund get off to a good start.

Another easy method to start putting money into a savings account is to sign up for a “keep the change” type of service at your bank. Many banks offer a service that will round up purchases and put the extra change into a savings account. You never know you are missing the money and one day you look at your savings account and there is lots of money in there! What a nice surprise.

Whether the portion devoted to savings amounts to 1% or 10% of each paycheck, the important thing is to get started. After taking this important first step many workers find that they miss the “extra” money less than they feared, and many are able to ramp up their savings over time.

Those same workers can help fund their emergency accounts even faster by dedicating any “extra” money they receive to their favorite savings account. From cash birthday and holiday presents to bonuses and incentive payments, workers can build up their rainy day funds without impacting their lifestyle or that of their family.

The same is true with annual raises, and many workers will want to dedicate a portion of their annual raise to the savings portion of their direct deposit arrangement. Ramping up the percentage devoted to savings is a great way to grow a significant nest egg with a minimum of hassle and hardship.

Learning to live on less than we make is definitely a learned behavior, but it is one of the most important lessons we will ever learn. No matter what your current salary, chances are you can set aside at least a few dollars from each paycheck. While that may not seem significant, those dollars can add up quickly, and a well funded emergency fund is a great way to cushion the blow of an unexpected financial setback.

Saving money is on everyone’s minds these days. Did you know the typical U.S. family spends about $1,900 a year on home utility bills? And, a large portion of that energy is wasted. Even when you think that you have done everything there is to cut back on energy costs, impulse spending, and other expenses, look again just in case you missed something. Lots of handy tips for saving on energy costs are presented below.

Install programmable thermostats so you only run your furnace/AC during “off-peak” or cheaper hours. Use ceiling fans to help circulate the air – these use far less energy than running your heat pump or AC unit.
Make sure there is weatherstripping and caulk around all windows and door. Check to make sure it sealing properly.
Conserve water used to maintain your landscaping by planting indiginous plants and limit turf areas.

Turn off the computer and monitor when not in use.
Lower the temperature on your hot water heater to 120 degrees.
If you can, use cold water for all laundry loads.
If you replace any appliances, replace them with ones that have the Energy Star label on them.
Air dry your dishes rather than using the dishwasher’s drying cycle.
Only run full loads in the dishwasher, washer, and dryer.
Change your light bulbs to fluorescent light bulbs with the Energy Star label.
Plug electronic devices that stay in stand by mode even when they are turned off into power strips. Electronic devices in stand by mode use several watts of power. If you turn the power strip off when you are not using the electronic devices, you will save energy.
Take shorter showers.
Turn the water off while you are brushing your teeth or scrubbing your hands.
Purchase motion sensor lighting for the exterior of your home rather than leaving the outside lights on all night long.
Turn the lights off in any room that will be unoccupied for 15 minutes or more.
Energy costs are rising and wallets are shrinking. It is time to be proactive if you want to save money. Use the strategies that work best for you and keep your eyes open for new ideas in order to realize the best savings.

When I was in high school, it was never a question of “if I go to college” it was a question of “what college will I attend”. My parents encouraged me to apply for scholarships, which helped fund an in-state university tuition of $12,000. That was twenty-something years ago – how things have changed.

Over the past 30 years, the cost of attending college has risen an average of 7% a year, exceeding that of inflation. For a child born today, that will equate to a bill of perhaps up to $350,000 to fund four years at a private university. Parents are faced with the dual responsibility of planning for retirement and financing their child’s education. With many of the tax loopholes used in the past now closed, new strategies must be found to save for this important– and crucial– part of your child’s life.

The most popular strategy available today is the 529 Plan. This is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans back in 1996. In 2006, Congress made the tax-free treatment of withdrawals used for educational expenses a permanent feature, and the funds in a 529 plans can be used for all educational expenses including books, room, board, tuition and miscellaneous fees. Every state now has at least one 529 plan available and the plans do vary from state to state. Some states, but not all, offer tax incentives to investors as well.

There are two types of 529 plan, or as they are legally known as “qualified tuition programs”. There is the pre-paid tuition plan and the college savings plan.
Pre-paid tuition plans generally allow college savers to purchase units or credits at participating colleges and universities for future tuition and, in some cases, room and board. Most prepaid tuition plans are sponsored by state governments and have residency requirements. Many state governments guarantee investments in pre-paid tuition plans that they sponsor.
College savings plans generally permit a college saver to establish an account for a student for the purpose of paying the student’s eligible college expenses. An account holder may typically choose among several investment options for his or her contributions, which the college savings plan invests on behalf of the account holder. Investment options often include stock mutual funds, bond mutual funds, and money market funds, as well as, age-based portfolios that automatically shift toward more conservative investments as the beneficiary gets closer to college age. Withdrawals from college savings plans can generally be used at any college or university. Investments in college savings plans that invest in mutual funds are not guaranteed by state governments and are not federally insured.

Another savings strategy is called a Coverdell Education Savings Account, or ESA. These accounts are similar to 529′s in that they are tax-deferred and tax-free when the money is withdrawn for approved educational expenses, which includes tuition for any sort of schooling (including elementary level). The main difference is contributions are much more limited at $2000, and there are income limitations for contributors (although anybody can contribute who meets the income requirements, not just relatives). The account must be depleted when the beneficiary turns 30, or there will be a 10% penalty and the gains will be taxed.

Traditional and Roth IRAs  are another good tool for financing education, as money can be withdrawn for educational purposes without incurring the ten percent penalty. An even better option is having the child fund an IRA in his or her own name, assuming they have some earned income to contribute, and then they have the option to used some of these funds for educational expenses as necessary.

Purchase Zero-coupon Bonds. These are bonds that pay all their interest at maturity as opposed to providing a regular interest income stream over time. The advantage is that the bonds may be purchased for a substantial discount compared to their face value at maturation.

Open custodial accounts such as UTMAs and UGMAs. Less popular than they have been in the past due to closing of “kidde tax” loopholes, these custodial accounts are tools that allow children to have ownership of assets without the creation of a trust.

In Summary: For those folks with children, integrating a plan for saving for college education into your overall financial life plan has become more crucial than ever before. Education is a necessity in today’s society for success, and the costs for obtaining this necessity are skyrocketing. With some advance planning, diligence and committment, you can provide your child with a gift that may make the difference between a fulfilling life– or just a life.

According to a new Associated Press Economy Survey, the frugal living many consumers have been forced to embrace during the recession is one they have no intention of letting go. Based on a survey of leading economists and interviews with “ordinary Americans,” even as the economy improves they have learned their lesson: spend less, save more. What’s unclear is how many of these Americans are “shopaholics” and how they may find a way to embrace a frugal way of life.

If you you cannot control your urge to spend then you are a shopaholic. Beyond joining a support group for people who share this compulsion, you can explore the world of frugal spending through the following five spending tips for shopaholics:

1) Cut up your credit cards. Maxed out or not, either way you’ll benefit from this liberating gesture. Consider it the ribbon cutting ceremony as you enter the foreign territory of thrifty living.

2) Shop with cash; leave your debit card behind. Even if you leave the house with a budget in mind, you know all too well that a “good deal” is around every corner. However, if  you leave your debit card at home, it will be impossible for you to go over budget with a set amount of cash in your pocket. (Note: If you don’t have it in you to cut up your credit cards, yes, they need to stay behind too.)
 

3) Go shopping with people who care. Whether it’s family or friends, shop with people who know you well. Those who genuinely care will keep you in check and talk you down from irrational purchases they know you will only regret later.

4) Make and stick to shopping lists. Never, and I do mean never, should a shopaholic leave the house without a list. And if you forget your list, go back home for it, even if you don’t realize it until you’re in the store, shopping cart in hand. Any guilt you feel wasting time and gas going back for your list will pale in comparison to the guilt of “winging it” and inevitably making compulsive purchases in the process.

5) Keep track of your spending. And I don’t mean just entering the amount of each transaction in your check register. In fact, ideally you should be using cash for every purchase so you’ll need a special record book for that, with assigned categories.

At the end of every day, record all of your transactions, including where and what you bought, assigning categories as you go. At the end of the week, go through all of your purchases and add up what you spent in each category – on food, coffee, gas, clothes, beauty products, entertainment, etc. Then based on each category total, try to come in under that amount for the following week. Consider it a challenge of sorts that should eventually reveal just how little you really do need.

Of course, a shopaholic’s urge to shop will never fully go away. When that urge gets to be too much, try these creative ways of embracing compulsive consumerism.

Since learning that 60 to 70 percent of the food we consume in the U.S. is genetically modified, I’ve been seeking out organic food almost exclusively, as it is prohibited from containing GMO ingredients. Some stores, like Trader Joe’s, are full of organic options. Others, like Fresh and Easy, not so much. Grocery stores tend to have a pretty decent selection. But invariably, no matter where I find organic food, it’s always more expensive than the conventional, chemically-treated option, so I’ve had to re-work my food budget accordingly. Yes, it leaves a little less for my savings, but I know my health and planet are richer for it in the long-run.

What a travesty, that chemically-treated food is considered “conventional.” For millions of years, organic was the norm, which begs the question:

If organic agriculture methods are so tried-and-true, why is it so expensive?

Mint.com outlines the three main reasons there is such a price difference between organic and chemically-treated food – a price difference of as much as 20 to 100 percent! These reasons are summarized below.
 

1) Subsidies. The U.S. government heavily favors chemical farmers with subsidies that help cover the cost of production, enabling them to charge less to consumers.

2) Economies of scale. Farmers who use chemicals and GMO seeds to repel insects and grow crops faster see higher yields than organic farmers, whose alternative methods take more time and money, like natural soil fertilization and higher animal welfare standards (i.e., no antibiotics or growth hormones). Successful farming under these natural conditions requires more oversight (i.e., labor). Plus, organic farmers lose more of their crops than conventional farmers do.

3) High associated costs. There is a cost associated with having food certified organic. Plus, organic farmers tend to operate further outside of cities than chemical farmers, thus increasing the cost of transporting food to market.

Unfortunately, the added expense of organic is more than most Americans are willing to accept. As Mint.com points out, less than 10 percent of us seek out organic food on a regular basis. Yet that is precisely what is going to keep prices high. As with anything else, the greater the demand, the lower the cost. We may have to pay more for organic food now, but the impact of chemically-treated GMO foods on our bodies and the earth will cost far more in the long-run.

We all know the saying, ‘Money talks’, but what is your money saying to you? If the only thing your money is saying is, ‘Bye, Bye’ as it disappears casually out of your bank account, it might be time for you to take stock of your personal finances. In this article you’ll find some great tips on whipping your money into shape and making it work for you, not the other way around.
What is Personal Finance and Why is it Important?

To understand personal finance, take a step back and look at the big picture. Businesses and governments have strict guidelines for managing their money and we expect them to do a proper job. We need to see ourselves as ‘Treasurers’ of our own little empire – and hold ourselves accountable for keeping our empire in the black. If that sounds daunting, don’t worry, it’s not that hard. You don’t need an accounting degree to manage your personal finances. All you need is a bit of time to sit down and work out where your money is going. Read on to see how to do this.
Tip Number One: Do a Money Stocktake

Money is a bit like time – if you don’t keep track of it, it seems to just disappear. According to a nationwide study in 2010:
Americans have an average cash spend of $233 per week, but can’t account for at least 9% ($21) of that cash. That’s more than $1,000 per year.

Sound familiar? It’s all too easy to lose track of what you are spending. A coffee here, a magazine there, it all adds up. So if you’re serious about managing your money, one of the best ways to start is to write down every single expense for a week. That includes coffees, lunches, shopping trips, drinks with mates, groceries – everything. Each night when you get home, write down that day’s expenses. Or better still, carry a notebook around with you and write down each spend as it happens (you could also use your mobile phone’s note feature). That way you’re less likely to forget something. This is a really empowering tip because you start to feel the beginnings of control over your money.
Tip Number Two: Money Boot-Camp

Once you’ve got your weekly cash spending written down, it’s time to whip your money into shape by using the ‘B’ word – a budget. The nice people over at mint.com have developed a free online budget planner. All you do is enter in your income and your expenses – including things like insurance, rent, car payments, and the cash expenses that you added up during the week. Most of these cash expenses will come under the heading of ‘Entertainment/Eating Out’. The program will calculate your total income and total expenses and give you a final amount – if this is a negative amount, it means you are spending more than you are earning – ouch!

So if you are in the red, you’re going to need to do some work with your money to get it into shape. But before you launch into a full-on assault of your spending habits, try the following ideas to ease yourself into your new disciplined money regime.
Tip Number Three: Little Changes Really Do Add Up

Don’t rush in and make big changes all at once or you’ll soon give up and go back to your overspending ways. Personal finance writer, Charles A Jaffe, has been quoted as saying, “It’s not your salary that makes you rich, it’s your spending habits.” The first place to make changes is those daily cash spends that you wrote down in the first week. When you do the budget, you enter in the weekly amounts and it calculates the annual amount for each expense. You’ll see that if you spend $4 a day on coffee, that equates to $1,040 per year! A $7 daily lunch purchase costs you $1,820 a year. Its incredible how these little amounts add up over time.

So, if all you do is reduce your coffee and lunch purchases to only every other day, you’ll have $1,430 extra at the end of the year to spend on a holiday or pay off your credit card. And that’s just the tip of the iceberg. You’ll be sure to find other little expenses that you can cut back on.
Tip Number Four: How to Manage Credit Cards

Credit cards are like alcohol – used responsibly they are great – but it doesn’t take much to lose control. Did you know that when you make a credit card payment, most providers will take that payment off the least expensive debt first? For example, if you’ve signed up for a 0% balance transfer card and then make a purchase on the card, you’re payment will go towards paying off the 0% balance first, while the purchase accrues interest at the normal rate. This is known as negative payment hierarchy. There are moves to outlaw this unfair practice, however it is still the norm.

If you carry a large credit card balance, you should find a credit card that offers 0% interest on both balance transfers and purchases for a certain period of time. And never use your credit card for cash advances, because as soon as you withdraw the money you are charged huge interest rates (up to 25% per annum in some cases).

If you are really having problems managing your money, once you have transferred your balance to a 0% balance transfer card, try not to use the credit card at all until you have paid off the amount owing. Yes, you will miss out on Frequent Flyer points and other rewards, but the benefits of these programs are far outweighed by the satisfaction you’ll feel when you start to get your money under control. Many banks offer prepaid or debit Mastercard and Visa cards, which allow you to use your own funds from your savings account for online purchases which require a credit card. They are a great idea. If you can only spend what you have in your bank account you’ll be much less likely to splurge on something that you can’t afford.
Tip Number Five: The Secret to Successful Saving

Once you’ve cut back on your spending and used those savings to pay off your credit cards, you can start thinking about saving and investing. Many financial planners and wealthy people will tell you the secret of successful saving is to ‘Pay Yourself First’. This concept was first introduced back in the 1920′s by George Classon in his book, “The Richest Man In Babylon”. Paying yourself first means setting aside 10% of your take-home pay in a separate savings account. The theory is that if you don’t put aside this amount first, then it will be gobbled up by the daily expenses of living. Once your credit cards are under control, factor this amount into your budget and you’ll soon see a very tidy nest egg developing. Whether you want to save for your first home, pay off your mortgage sooner or invest in shares and property, ‘paying yourself first’ is a guaranteed way to achieve your financial dreams.
Tip Number Six: Traps for Young Players

One of the biggest traps to avoid in personal finance are the ‘No Interest, No Repayments for 24 Months’ type offers touted by the big furniture and electrical stores. These offers sound great at first, but there are often hidden monthly administration costs. Plus, if you don’t repay the full amount within the time limit you will start to pay exorbitant interest rates on the remaining balance. If you do decide to take up one of these offers, don’t just pay the minimum amount suggested on the monthly balance report you will receive. Take out your calculator and divide the total amount owing by the number of interest free months and pay that amount each month to ensure you have a zero balance at the end of the agreement.

Another trap to avoid is using your mortgage’s redraw account for non-essential items. You should never use the extra money you’ve paid off your mortgage for things such as holidays or Christmas presents. Start a separate account for these types of things and keep your redraw amounts in place to help pay off your mortgage sooner, or use it for things that will add value and equity to your home – such as renovations.
Tip Number Seven: Planning for Life Events

Once you have your budget in place, you’ll need to make adjustments as your life situation changes. Getting married or setting up house with your partner will require you to work on a combined budget, and if you are thinking of starting a family you will need to work out how much extra you’ll need to raise a child. You’ll find a handy calculator at babycenter.com/baby-cost-calculator to help you with this.

An important element of any personal financial plan is life and income protection insurance, particularly if you have a family. If for some reason you are unable to work, income protection insurance will pay you a certain percentage of your income (up to 75%) for up to 3 years. There are also various other types of life insurance such as accident and serious illness cover which provide lump sum amounts. An insurance broker will help you to work out the best cover for your needs.

So there you have it. Seven tips to help you turn your personal finance into a lean, mean money machine.

If you’re like most Americans, you’re lacking in two key areas that medical savings accounts (MSA’s) may help you with:
saving money, and
paying out-of-pocket medical expenses.

MSA’s can help with both, though only if you meet the qualifiers established when health savings accounts (HSA’s) were signed into law. Think of HSA’s as an expansion of the MSA program, clearing the way for even more people to take advantage of this tax deferment opportunity for qualifying medical expenses.
What is a Medical Savings Account (MSA)?

A medical savings account, or MSA, is an opportunity to cover your medical expenses with tax-free income. An MSA may only be established for individuals covered by a high-deductible health plan (HDHP). Whatever amount you (or your employer) contribute to the MSA throughout the year is considered tax-free income. It remains tax-free if and when you withdraw said funds to pay for qualifying medical expenses. These withdrawals count toward the HDHP deductible. Once this deductible has been reached via qualifying MSA withdrawals, the HDHP covers any additional medical expenses incurred the remainder of the year.

MSA’s were signed into law in 1996 under the Kassebaum-Kennedy bill during President Bill Clinton’s administration. They were made available only to self-employed individuals or businesses with 50 or fewer employees. Because of these limitations, HSA’s (health savings plans) were signed into law in 2003 – the same concept as an MSA, but clearing the way for anyone to take advantage of this tax-deferment program.
What is a High-Deductible Health Plan (HDHP)?

An HDHP is a health insurance plan that comes with a higher deductible than most insurance plans. However, because the deductible is so high, the premiums are relatively low. MSA’s must be set up in conjunction with an HDHP.
What Are the Pros and Cons of an MSA?

PROS: Any out-of-pocket medical expenses you incur with a high-deductible health plan are tax-free, meaning you will not be taxed on whatever contributions/withdrawals you make with your MSA throughout the year. If you are a relatively healthy person with few medical expenses, MSA’s are a great way of saving tax-free money that you can access without tax or penalty once you reach retirement age.

CONS: If you incur medical expenses on a regular basis, MSA’s can be costly, as you are required to carry the HDHP. Your premiums may be low on the HDHP, but the deductible is so high that, even with tax-deferred payments via the MSA, you will have a hefty out-of-pocket expense. In other words, if you do have serious medical issues, you may be better served by a regular insurance plan with a higher premium, but with a lower deductible.
How Can I Qualify for an MSA?

To qualify for an MSA you must have been an active participant in the program prior to January 1, 2008. You may qualify from that date forward if, and only if, you became a participant in a high-deductible savings plan through a participating employer. The new alternative for individuals is the HSA (health savings account).
What is an Archer MSA?

An Archer MSA is simply a reference to the sponsor of the bill that established MSA’s in 1996 – Congressman Bill Archer of Texas.
Who Makes Payments Into My MSA?

If your participation in an MSA is through your job, your employer makes contributions to the account. If your employer does not make such contributions, or you are self-employed, you make the contributions. However, at no time in a given year may and your employer both make contributions to your MSA.
Is There a Maximum Amount That May be Contributed to an MSA in a Given Year?

Yes, contributions to your MSA cannot exceed 75 percent of your HDHP’s annual deductible. Contributions also cannot exceed the total income you received from the employer through whom you have your HDHP.
What if I Contribute More Than the Allowable Amount into my MSA?

You will be taxed for the excess contributions.
Under What Circumstances May I Withdraw Tax-Free Funds From my MSA?

Most medical expenses qualify under the MSA guidelines, including basic medical care, dental care, vision care and long-term care needs. This excludes over-the-counter drugs not prescribed by a physician.
Must I Itemize my Deductions on my Tax Return in order to Receive Deductions for MSA Contributions?

No, you need not itemize your deductions in order to claim tax-deferred contributions to an MSA. However, you must report your contributions on Form 8853.
If I Change Employers, Do I Lose the Contributions I Have Made to my MSA?

Your MSA is mobile so you will not lose the funds you have contributed with an employer, whether you change employers or simply leave the work force. That said, you cannot make further contributions to the MSA unless you go to work for an employer that has a qualifying MSA program.
What Happens to my Contributions if I do not Withdraw the Funds for Use by the End of the Year?

Unused MSA contributions roll over to the next year.
Can I Withdraw MSA Contributions from the Account for Non-Medical Expenses?

Yes, you may withdraw MSA funds at any time. However, you will be taxed and penalized if the funds are used for non-qualifying medical purposes.
What Happens to my Contributions Once I Reach Retirement Age?

Once you reach age 65, any funds you have in your MSA may be withdrawn, tax-free. Any non-qualifying withdrawals made before that time (for non-medical expenses) result in taxes and penalties.
What Happens to the Funds in my MSA in the Event of my Death?

Your MSA is automatically transferred to your named beneficiary. If it is your spouse, it becomes his or her MSA. If it is not your spouse, the MSA is dissolved and the funds are made available to the beneficiary, but as taxable income.
What is a Medicare Advantage MSA?

A Medicare Advantage MSA is simply an MSA plan available to Medicare participants. Medicare makes the contributions to this type of MSA account.

Financial planners are practicing professionals who help people deal with personal financial issues through proper planning and management of cash flow, saving for higher education, investing money, tax planning, estate planning, and business planning. Now that you’ve started to save money, you will need a professional to help you make the most of this money.

We all know how important it is to save for our financial futures, staying out of debt and credit history, but few of us have the time, knowledge, and resources it takes to invest our money wisely. Since we already hire professionals to do our gardening, shopping and other chores, it only seems natural to turn to a professional for financial planning advice. While hiring a financial advisor can certainly make sense, it is important to understand what a financial advisor is, and more importantly, how he or she is compensated. After all, you worked hard to get that savings plan going, you want to make every penny count!

When looking for a financial planner, you want to make sure this person is a “certified” financial planner which means this person has taken high-level training programs to stay current in the marketplace. There are three basic types of financial planners in the marketplace – commission based, fee based and fee only. The differences between the three flavors of financial planners are vast, and it is vital for any would be investor to understand how the choice they make can impact their financial future and that of their families.
Commission Based Financial Planners

A commission based financial planner is compensated based on the investments he or she sells, typically earning a commission on each product he or she sells. This is similar to a mortgage broker. While it is certainly possible for a commission based financial planner to be knowledgeable and honest, it is important for clients to understand the potential conflicts of interest that can arise.

Clients of commission based financial planners must make doubly sure that each recommended investment truly meets their own needs. It is important to consider factors such as age, financial experience and years before retirement when making an investment choice, and it is vital that any commission based financial planner respect these needs and cater to them.
Fee Based Financial Planners

A fee based financial planner is basically a combination of a traditional commission based financial planner and a fee only financial advisor. Even though these financial planners may charge an hourly or set fee for their services, they are also compensated through commissions on the investments they sell. It is important for every investor to understand the difference between a fee based advisor and a fee only advisor and act accordingly.

As with a commission based financial advisor, it is important for clients of fee based financial advisors to be sure that the advice given is sound and directed toward their own needs. Those who are in search of truly independent and impartial advice may want to consider a fee only financial advisor instead.
Fee Only Financial Planners

The third type of financial advisor is known as the fee only advisor, and the compensation structure of these advisors is designed to ensure impartiality, honesty and independence. Unlike fee based and commission based financial advisors, a fee only advisor is compensated only through the fees he or she charges clients.

Clients pay for the services of a fee based financial advisor in a number of ways, including hourly fees, yearly charges and fees for money management. Fee only advisors derive none of their income from commissions on the products chosen by their customers, eliminating the conflicts of interest that can arise with the other two types of financial professionals.

A surprising large percentage of the American population do not have a bank account. According to the Federal Deposit Insurance Corp., 7.7 percent of U.S. households, or about 9 million people, do not have a savings or checking account. Many studies have given credence to the theory that checking and savings account are not right for everyone. At the end of this article, we will give you some tips on how to find the best services for operating without a bank account.

These unbanked and underbanked consumers represent a considerable market opportunity for financial services companies. The unbanked and underbanked bought upwards of $3 trillion of goods and services with cash and money orders. Too often, these consumers pay a premium to get access to their funds at fringe financial outlets.

What do the terms Unbanked and Underbanked mean? An “unbanked” person is someone with no bank account of any kind: no checking, savings or credit card. “Underbanked” means a person who has some sort of bank account but still uses services like check cashing, money orders and payday loans.

So who is likely to be unbanked or underbanked?

Generally low income people do not have checking accounts, while low to middle income people are more likely to fall into the underbanked segment. In 2009, the FDIC did a study of the underbanked and unbanked. The study found that 7.7 percent of U.S. households, approximately 9 million, are unbanked and 17.9 percent of U.S. households, 21 million are underbanked.

Walmart has been adding financial services designed to cinch its relationship with the “unbanked” by recently offering a new prepaid debit card for its “credit-challenged” customers. Walmart is providing a one percent cash back bonus for consumers who use its prepaid Visa to buy gasoline, another step in its long, concerted effort to build loyalty among lower income consumers.

Reasons Why People are Underbanked:
Distrust of the banking system.
Cannot maintain sufficient balances to avoid high monthly fees.
Write too few checks to need a checking account.
Have too little income to justify a savings account.
The decline of bank branches in many lower-income and inner-city neighborhoods has made a banking relationship inconvenient for many consumers.
Have no Social Security Number. (believe it or not there are 20 million adults in this country who do not have a SSN)
Tips for Using “Unbanking Services”

Loans: Peer-to-Peer lending sites, which require no credit. Some of the big ones: Prosper.com and VirginMoney. There’s also GreenNote, which provides alternative student-loan funding sources such as friends, family and alumni.
Check Cashing: Even big name Walmart offers check cashing for a $3/check flat fee. If you compare this with checking account fees of $10/month and you are paid twice a month, check cashing may be a cheaper alternative to banking. There are many check cashing stores around (unfortunately).
Credit Cards Alternatives. You can use Prepaid Cards. Shop around online to find a credit with the lowest setup fee (yes, there is a setup fee involved.) You can get one online and reload it, or buy one from a store. In this way, you can use plastic instead of cash.

Debit Cards: Debit cards tied to non-banking financial institutions like Paypal. This may be a good option for those who buy and sell online.
Secured cards: There are many offered from various banks. Your credit limit depends on your deposit (any bank will give you a savings account as long as you have 2 IDs – it’s a checking account which is difficult to get).
Checking Accounts: Non-Chexsystems banks