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CDs & Ladders: How to Save Like You Mean it.

CD stands for Certificate of Deposit. When you purchase a CD you agree to keep your hands off of your money for a set amount of time. The longer you are willing to let your money sit, the more interest it will accrue - both over time and at a higher rate.

Little by little, your money grows.

CDs are extremely safe and a great place to park your money for a bit. If you've just made a bunch of money by selling a car or a house and you're not sure what to do with it, a CD is a good option to earn a bit while you figure it out.

If you decide to pull your money out early you will have to pay fees, typically by forfeiting several months of interest you've earned.

Something very cool you can do with CDs is to create a CD ladder and make your money really, really work hard for you. All the while you'll have fee-free access to parts of it annually in case the need should arise. Here's how CD laddering works:

You have $10,000 to invest

You buy 5 separate $2,000 CDs for one-, two-, three-, four-, and five-years

When your one-year CD is up, you use that money to buy a five-year CD

When your two-year CD is up, you use that money to buy a five-year CD

And so on, until you have 5 five-year CDs

Each year on your purchase anniversary you will have a CD ready to either cash out or reinvest

For you initial investment of $10,000 you will have made $855 in interest. That's $400 more than if you'd just parked it in a low-interest bearing savings account.

Savings accounts used to be a safe way to make a little bit of money on your money, but now? Forget it. The tiny amounts of interest you earn will be eaten away by inflation. If you have some money to put away and can afford not to touch it for a set amount of time, a CD might be your best bet.

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3 Common Money Mistakes and How to Fix Them

Oops, you did it again. Mistakes happen, that's a fact of life. Adulting means you have to fix them. But how? Here's how.

Money mistake #1: You have no idea where your money goes

How do you fix it? Make a budget! It is the most basic thing you can do and will open your eyes to all the ways you are pissing money away. If you get through your transactions and see that you've spent $100 this month on drinks out with friends, but $0 on paying down your credit card debt then it will become really real. Invite your friends over for some BYOB and Netflix then immediately make a payment to your credit card. You'll be glad you did!

Money mistake #2: You do not have an emergency fund

How do you fix it? Save a chunk of money! $500-$1,000 is usually enough to save your butt if something unexpected happens. Aim to have 3-6 months of expenses saved in case of a dire emergency. Start saving and don't stop until you hit your goal. How much can you save? I don't know, but you should. Look at your budget and see what you can trim to save a bit of cash, and then stash it away for a rainy day.

Money mistake #3: You spend money on things you could get for free

How do you fix it? Go to the library! Music, books, magazines, printing services, classes, book clubs, arts programs, volunteer opportunities, and snacks all await you at your local library. Get on their website and poke around, you're sure to find something you like. Attend a clothing swap (or organize one with friends). Borrow a tool from a friend instead of buying one. Shop your closet. Go for a walk in the park instead of the mall. Go to the museum on a free day. Do something besides eating out at restaurants when you go out with friends. There are lots of free options, and if you're broke you need to find them.

Your mistakes don't define you, how you rebound does.

[nicolewhitewrites-blog]

How to Plan a Week's Worth of Meals and Actually Stick to It

The biggest weapon in the war against ordering thai again is menu planning. How do you do it? Well, you're on the internet right now and that truly is half the battle. And since you're here, we've got some easy tips to make sure you plan your weekly menu and stick to it.

1. Check out the weekly ads for a few grocery stores in your area.

Write down produce that you like that's on sale and do the same for the meat and fish.

2. See what you already have.

Next up, take a look into your fridge and cupboards. Write down anything that you've got and need to use up. Also make a note of anything that you'll need like milk, eggs, etc.

3. Plan which days you aren't cooking/bringing lunch.

Now, take a look at your calendar for the week. Working late on Tuesday? Try to find a slow cooker recipe that you can start in the morning. Having dinner out on Friday? Don't plan anything for that day. Catered lunch at work on Monday? Ditto.

4. Be disciplined when you are grocery shopping for the week.

Now, the hardest part: Go to the store and only buy what's on the list. If you're really cutting back and really don't trust yourself then only take cash. I did it for years! And more than once I've suffered the indignity of having to put an item back because I didn't have enough money. It happens, you'll live, I promise.

5. Try theme nights to make planning easier.

After you've gotten the hang of basic menu planning, you can opt for theme nights like Taco Tuesday or Mushroom Monday to take the "what do we make tomorrow" out of it all. We have had breakfast for dinner on Tuesday for many, many years.

6. Make one basic meal you can re-heat.

I also do my best to incorporate one very low cost meal per week, usually a riff on beans and rice like…uh…beans and rice with tortilla chips and salsa or mujadara with pita and hummus. You'll find what works for you and your family.

[nicolewhitewrites-blog]

What Even Is a FICO Score?

Even if you've never used credit or borrowed a dollar, you've got a FICO score. And that sad little score is 0 — for now! Through on-time payments, keeping accounts open and in good standing for a few years, and not using all of the money made available to you, you'll slowly build your FICO score up to a respectable number.

So, what is this "FICO" you speak of?

FICO stands for Fair, Isaac & Company. Fair Isaac aggregates data based on lender reports to generate a number for each consumer. Their scores are purchases by the billions by lenders who then make decisions about customer's creditworthiness based on the data. There are lots of ways that lenders can accumulate data and evaluate borrowers on a case-by-case basis, and they did until the 1950s when Fair, Isaac & Co. was started.

Age ain't nothin' but a number, but FICO is your whole future.

FICO is the fastest, easiest, and most widely available way for a lender to decide if they want to lend to you. Landlords, banks, health insurance companies, and even employers use FICO to evaluate their risk.

Don't get us wrong, you can get by with bad credit, but life is a lot easier and less expensive with good credit. You'll pay less in interest over time and have a lot more options afforded to you. So how do they calculate your FICO score?

Payment history. Pay your balance in full each month. If you can't afford to pay your balance, cut your spending.

Credit utilization. Just because you have a $50,000 limit on your card don't mean you can spend it all. Keep it under 1/3.

Account history. A long history shows that you aren't going to skip town anytime soon.

New credit. Don't go out and open 10 new store accounts the month before you apply for a mortgage. It makes you look like you reallllly need money.

Credit mix. Care loans, traditional credit cards, mortgages, whatever - just mix it up. Have a few different types of accounts shows that you are well-established and well-rounded consumer.

Responsible credit use over a period of time makes the world go 'round. Get on board!

[nicolewhitewrites-blog]

Here’s Exactly What’s Going on With the Federal Reserve Right Now

So, you may have heard something about the Fed increasing the rates this year. But what does that even mean?

The US Government's Federal Reserve Open Market Committee (FMOC or 'the Fed') controls the rate at which banks pay interest to the Federal Reserve for borrowing money. Why do the banks need to borrow money from the Fed? Because they must meet the federal mandate for banking reserves, which was set up after the Great Depression.

Just like we advise you to have a three- to six-months cushion of expenses put aside, the Fed advises banks to do the same. That is their reserve.

When a bank runs out of money, and it occasionally does happen, they can either borrow from another bank or the Fed to meet their minimum reserve. Borrowing from another bank would be easier and cheaper, but since there aren't too many banks left, they tend to run into difficulties (like being shut down by the Fed). Ever-changing regulations (set up by the Fed) coupled with mergers and little banks being swallowed up into big banks (okayed by the Fed) creates a situation where the Fed is the only place to turn to when reserves need to be met. Oh, and the Fed sets the reserve minimums.

So...does the Federal Reserve need money? Is that why they charge more interest? Nope! The Fed prints money, they don't need more -- they make it. And since we've departed from the Gold Standard, the US dollar is essentially valueless. We create it here, exchange it here, and the "value" is determined here by our market's supply and demand.

When the Fed raises interest rates, it makes it more expensive for banks to borrow money from them. Why would they do that? To make the supply of money smaller. With less money circulating, it becomes more valuable and people (you) will pay more for it in the form of loan interest for houses or cars.

Raising the interest rate is the way that the Fed manipulates the economy by either restricting or flooding the market with money.

What does it mean for you?

Prepare for an increase in borrowing rates for houses, cars, education, credit cards, rent, food, and anything you pay for with money. The Federal Reserve interest rate will be 3% by the end of 2018; it is currently 0.75%.

[nicolewhitewrites-blog]

What It Means to Be Frugal

Have you ever decided against instant gratification and instead chose to wait for an even more satisfying experience later? Maybe you passed on a mediocre cookie while on a quick break so you could enjoy a full, delicious piece of cake at home. Maybe you had enough vacation days at work to go take a long weekend away, but you waited until you accrued more so that you could enjoy a proper week off. Both of those decisions, at their core, are made from a place of frugality. You value your desserts and you want to enjoy those calories, not rush them. You understand the importance of taking time away and would like as much as possible, even if you have to wait a little bit longer.

Saving money just for the sake of watching it pile up is cheap. Saving money so that you may apply those savings towards a goal is frugal.

We're all familiar with the stereotype of the ultra-thrifty super couponer who stockpiles dozens and dozens of cans of tuna in their basement -- they were such a good deal! That person is cheap. But if that same person wants to help stock the shelves of a local food bank and can only afford to through their coupon skills? That's frugal.

To truly be frugal, you must first find your purpose. Are you trying to save up for a house? Paying down your student loans? Once you've targeted your goal, all your thrifty efforts suddenly make sense and are purpose-driven.

To be frugal is to make choices based on the long-term return, which admittedly can be very tough to do. We're surrounded by machines that manufacture automatic and instant information, affection, food -- whatever we want is just a few taps away. Those fleeting happy moments are false. They aren't meant to create a lasting feeling of satisfaction, they're meant to keep you coming back for more of the short bursts of pleasure.

By focusing on your end-game, you can learn to detach from the instant gratification of sub-par lunches in exchange for the delayed satisfaction of one killer meal per season at a Michelin starred restaurant. The choices are for you to make every day.

True frugality is considering your spending as it reflects your goals.

[nicolewhitewrites-blog]

Here's Why You May See Your FICO Score Go up This Summer

If you're one of the reported 12 million people who have tax liens on your credit report that are affecting your FICO score, you'll see a nice little jump in your score this summer. According to FICO, if a lien or judgment does not match three of their four criteria (name, address, social security number, and birth date), it will no longer appear on your credit report as of July 1st.

Until now, if an incorrect item appeared on your report the onus of responsibility was on you, the consumer, to seek it out and file for corrections. For the first time, the reporting agencies will be qualifying the derogatory information before it hits your report — which is great news! The first step in this new process is to delete any incorrect tax lien information that already exists on consumer reports. As a result, you should see a boost of 20-40 points to your FICO score, but only if yours is one of the corrected reports.

Increased credit scores mean that you will pay less for the money you borrow since consumers with higher scores get lower interest rates on loans and mortgages.

The downside to all of this good news is that some consumers may suddenly be in the approval range for loans they simply cannot afford. When deciding to take out a loan, or apply for a mortgage, or lease a new car, you should look at your own budget to see if you have enough money to cover the payments. Responsible borrowing will never lead you down a bad path.

How will you know if your score went up?

There are several ways to access your credit report, but the best way is through the official site: Annual Credit Report. You may access each of your three reports once per year for free. Never, NEVER, pay for your credit report.

Getting a look at your credit score is simple, too. Sites like Credit Karma and Credit Sesame offer consumer access to scores for free. It never hurts to look at your own score, so don't be afraid to take a peek.

[nicolewhitewrites-blog]

America's Hardest Working Cities Might Surprise You

WalletHub has conducted a study to determine the hardest working cities in the U.S. Did yours make the list?

WalletHub’s analysts compared the 116 largest cities across six key metrics. Their data set ranged from "labor-force participation rate" to "average weekly work hours" to "share of workers with multiple jobs."

Anchorage, Alaska came in at #1 on the list with a score of 90/100. Virginia Beach, Virginia; Scottsdale, Arizona; and Washington, D.C. also cracked the top ten. Cleveland, Ohio; Detroit, Michigan; and Burlington, Vermont were at the bottom of the list of the 116 cities studied.

You can read more about their methodology when you view the full report here: 2017's Hardest-Working Cities in America.

Some interesting takeaways

Folks working in Cheyenne, Wyoming have the shortest commute time at just under 14 minutes, while New Yorkers clock about 40 minutes on their way to the office.

William E. Spriggs, Howard University Economics Professor, has this to say about America's working hours: "Compared to other OECD countries, American wages rank among the lowest. So to earn comparable incomes, Americans must work longer hours than most Europeans."

All experts weighing in on the study agreed that there is ideal "magic number" of hours to work per week. What is key is knowing your own mind, body clock, preferences, and intentions. Above all else, balancing work and life is the key to productivity.