A few days ago I was sorting through my miscellaneous pile of random papers, bills and notes from way back, when I discovered a rare, ancient artifact - my checkbook. Haven’t seen that for awhile., I said to myself. This brings up a good question I’d like to pose to everyone reading now. Do you still use your checkbook? And if so, why?

Ah, the checkbook. I remember my first checkbook. It was college and I opened my first checking account so I could pay rent and buy beer books. But soon that little book went the way of the doodoo with the advent of online banking. It took me more or less a year to fully make the switch but my finances are much more streamlined because of it. But I do still use checks to pay for a few things. Mostly just rent. Besides rent, the last time would have been… paying a parking ticket over a year ago.

In this time of convenience, checkbooks just don’t make the cut. Instead of carrying around a wallet of those paper slips that we have to fill out for every purchase, we have a plastic card that we slide. Instead of paying your monthly bills with checks and mailing them, it’s just easier to go online and get them all done in 10 minutes or less. And going online also gives you the option of seeing what your current balance is, something a checkbook could never give. It’s also a time of environmental responsibility; save more and conserve. Checks are soon becoming a thing of the past, at least from this blogger’s perspective.

So who’s still using their checkbook? Let me know in the comments!

Photo by theritters.

It’s easier than ever to become a millionaire. So what’s the secret? Don’t laugh, but it’s plain old saving. Getting an early start on your savings coupled with the right investing strategy will bring you up to millionaire status. The catch? You’ll have to wait a few decades.

According to the MSN Money article Start on your first $1 million at age 16, the simple recipe to become a millionaire has five simple steps:

• Work 4 summers, from age 16 to 20
• Save the income in a Roth IRA account
• Invest in a simple, low-cost equity portfolio
• Wait 47 years
• Collect at age 67, untaxed and ready to spend (maybe on a new hip by this point)

The article takes into account that, starting from age 16, a person earns $2000 each summer for four straight summers. Then if invested in a Roth IRA, it will grow, tax-free, for as long as the account exists. All withdrawals from the account after age 59 1/2 will be tax-free. The money grows to $25,917 by age 30, $197,943 by 50, $547,037 by 60 and finally gets over one million by age 67 or $1,114,423 to be exact.

Two problems I see right away. First, getting an average return of 10.7% isn’t as easy as the article says it is. But, then again, some people say the opposite. The article also states that if you invest in small company stocks, whose long-term annual return clocks in at 12.5 percent annually, you will have even more money. Nice to know. Read more…

Do you spend money when you shouldn’t? Credit cards seem to be made just for you? Budgets? You don’t need no stinkin’ budget… If you can’t seem to limit yourself by willpower alone you may need some extra help in the form of Intacard. While the idea of prepaying has been around for awhile, Intacard does something a little different by being an easy to use prepaid debit card that is not linked to a traditional bank account or credit card. Just transfer money to it and go. As their website says: “Intacard is the easy way to pay for whatever you are “inta” either online or offline.”

Intacard may be just a simple prepaid debit card but in addition it has a few good features that may peak your interest. For starters, approval is a no-brainer. Bad credit and under 18 are welcome. There are also 3 ways to get cash onto your card once you have it. Direct bank deposit, place funds via a regular credit card or go to an Australian post office to place funds (this one is a little harder to do if you’re based in the States). You can also upload your custom design to make your card unique.

Currently the card is only available with Cirrus and Maestro, with Visa and Mastercard coming soon. Did I mention Intacard is based in Australia? But don’t be disappointed yet Americans: Read more…

For many students, college is the first time out in the real world and mastering money is a major milestone on the road to independence. Some rise to the challenge while others stumble slightly, while still others fall flat on their face and need reconstructive surgery to repair the damage. To avoid being the latter, here are the most common student money mistakes and how to avoid the financial turmoil caused by them.

Not knowing enough about credit cards before you get one. Many credit card companies sponsor giveaways and other events at universities. The whole point is to push credit cards on unsuspecting students. Don’t fall for it! These cards usually have good introductory rates but when a couple months go by the real rates kick in, you’ll be left wondering how your $200 balance turned into $600 in the blink of an eye. If you want to get a credit card, read Choosing Your First Credit Card to get good tips on what to look for in a card. Read more…

Photo by DennisSylvesterHurd

College can be fun, enlightening and expensive. To help with that expensive part many students get part-time jobs or learn to love Ramen. But for the few that have the skills, talent and drive, freelancing can definitely be a great alternative to sleeping on your friend’s couch. A freelancer is defined as a person who works as a writer, designer, performer, or the like, selling work or services by the hour, day, job, etc., rather than working on a regular salary for one employer. If you’re talented enough, paid attend in class and have the drive, you to can become a college freelancer.

College kids represent an incredibly useful, and underutilized, talent pool, says the FreelanceSwitch.com article, College Students Drink, Eat Ramen Noodles… and Freelance? More and more students realize that instead of making lattes at the local Starbucks, they can be making logos for local businesses, writing for the local newspaper or a myriad of other tasks perfectly suited for most students studying design, art, computers, photography, writing and even accounting.

There are multiple benefits to being a student freelancer. First, student freelancers get a taste of what it’s like to be part of the workforce and still be able to fall back into their comfort net of professors and mentors to siphon help from if needed. Also the work that they do in college will give them a leg up when it comes to those first job interviews. Another great advantage is all the contacts and referrals you can obtain while doing work for numerous people and businesses. This network can help immensely when looking for a job. Read more…

Teaching your kids about money management is a very important lesson, but that lesson becomes even more necessary when your kids are ready to leave the nest and to go to college. College is usually the first time people are exposed to managing their own finances and the way they deal with them at this important time can be a benchmark on how they will manage their finances throughout their lives. If you’d like to teach your teen about money and credit, keep reading to get some good tips. Read more…

Ah. Tax season. That magical time when everyone is usually miserable because they put off doing their taxes till the last possible minute. If you are a student you may not need to worry since your parents may claim you and file your taxes with theirs. But, the unlucky ones, may have to do some prepping and planning of their own. Take heed students and recent graduates: this year take your taxes in early but before you do here is what you need to know.

Before you start gathering your paperwork, check with your parents. They may claim you as a dependent. If your parents claim you as a dependent and you file separately by accident, expect a nice letter the IRS asking that either you or your parents amend the returns. Read more…

As new students start to enter college they will make mistakes. But forgetting to study for the mid-terms is small compared to the horror stories of people that have plummeted into credit card debt during college. These mistakes, if not dealt with properly, can cost thousands. Dealing with mistakes and setbacks is an important part to mastering your personal finances.

The best way to deal with financial setbacks is by being prepared and educating yourself about money. The best defense is a good offense after all. Unexpected medical bills and car repairs are usually the main culprits when it comes to that unexpected slide into debt. An emergency fund can be a lifesaver when those unexpected bills pop up. Make sure to put a little aside every month into a separate savings account. Make your money work for you by opening a high-yield savings account instead of a regular one. Also educate yourself on the ins-and-outs of your loans and personal finance. By reading blogs, magazines and other resources you can get some pretty good ideas on everything from easy ways to save money while in college to tips and tricks to save gas. Read more…

The cost of college is rising. Fast. While tuition continually out paces the rate of inflation, middle class families can easily be left behind if planning for college costs doesn’t start early. To get started, check out state-sponsored college savings plans, often called “Section 529 Plans.” These plans are designed to help families save funds for future college costs. Here is what you need to know to start saving with a 529 college savings plan. Read more…

Congratulations, you just graduated from college! If money is tight after the best years of your life and that dream job seems to be a little too elusive, you may have to think about student loan deferment and forbearance.
Warning: you should only use deferment and forbearance as a last resort. With that in mind, here is your guide to student loan deferment and forbearance.

If you’ve exhausted your options and can’t get relief, you may be able to suspend your payments temporarily. A deferment is when the lender/servicer grants a temporary suspension of a borrower’s monthly payments. To defer your loan repayment, you must meet certain specific conditions. Read more…