College savings funds such as 529 Plans and Coverdell Education Savings Accounts (CESA) provide a tax-free advantage on earnings generated by the funds, and are among the best choices for families looking to invest for college expenses. Additional college savings programs can be explored at websites such as www.collegesavings.org.

Allocating funds on a monthly basis is the best way to build a college savings plan. And with automatic fund transfers available for most investment plans, there is little to do once the fund is set up but to sit back and watch it grow. Calculate the amount of available monthly funds that can currently be used towards a college savings plan. As you pay off outstanding debts, or experience other positive changes in your monthly income, plan on using the money you previously saved towards these debts each month to increase the amount being placed into the college savings plan.

Once you have your decided on your monthly allocation, the type of fund you wish to set up, and the financial institution you want to manage your fund, actually creating the account can be quite simple. It involves filling out a detailed application, paying the enrollment fee (if applicable), and transferring your first investment contribution.

Giving your children the gift of an unlimited future is not strictly for the very wealthy. With a little determination, discipline, and planning, you can easily set up an effective college savings plan to ensure your child gets their turn to wear that cap and gown on graduation day.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

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We’ve all been there. Holiday shopping for friends and family ends with considerable credit card expenses and the associated interest rates that accompany them. We don’t want to skimp on gifts for our loved ones, so we place ourselves in a financial bind to make sure the Christmas tree is overflowing with brightly wrapped packages. But you can eliminate the use of credit cards and the huge blow to your checking or savings account if you put aside a certain amount each month of the year for use towards holiday gifts.

Special purpose savings accounts are available through many reputable online banking institutions, such as ING Direct. Automated fund transfers can be set up to automatically transfer a specified amount of your paycheck into these accounts. Place your planned holiday purchases into a budget. Divide the lump sum by 12 to determine the monthly savings amount needed to reach your goal. For instance, if you plan on spending $1,800 on next December’s gifts, your monthly allocation will be $150, a much easier sum to swallow a little at a time.

Responsible financial management doesn’t mean that you have cut gift giving out of your yearly budget. With a dash of planning and a pinch of foresight, you can build a recipe for a great holiday season.

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Credit cards make it all too easy to make these unplanned or spontaneous purchases. You don’t have any cash on you, but you simply must have that 2-pound milk chocolate super bar, fancy new electronic gadget, or even a new car or truck. So what do you do? You pull out a credit card and tell yourself “No problem, I’ll pay this off later.” Not only are you setting yourself up to pay much more than the sticker price on the item due to credit card interest, but additional impulse purchases will only compound the problem and leave you deeper and deeper in debt each time.

But there are a few strategies you can use to reduce the amount of impulse purchases placed on your credit cards. Here’s how:

1. Make a List: Before heading off to the store, develop a clear list of everything you need to get. While at the store, stick to your list.
2. Stay Focused: Try to avoid distractions while shopping for items on your list or standing in line at the checkout counter. Research has shown that distraction is the leading cause of impulse buying.
3. Think About It: Prior to actually buying the impulse item. Hold it in your hand and think about it for 10 seconds. If you cannot come up with 3 reasons why you need it within that timeframe, put it back – you don’t need it. 

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There are a few simple tips, however, that can help relieve a good portion of the pain associated with holiday shopping. Follow these guidelines and enjoy a stress free holiday this year:

1. Get Organized: Men in particular could use some help with this one. Instead of rushing to the mall on December 23^rd with no clear idea as to what you want to get for your family and friends, make a list of each person and possible gifts well in advance. Then, plan out your shopping route. Breaking the shopping process up into multiple trips throughout November and December can keep stress to a minimum. Group stores that are near to each other together, so that one shopping excursion hits several spots.
2. Skip “Black Friday” for “Cyber Sunday”: For many products on your shopping list, there is no need to even start up the car in this day and age. Online shopping is gaining in popularity. In 2008, almost 30% of holiday gifts were purchased online according to the American Research Group. Online shopping offers the ability to easily sort and compare thousands of products to select the appropriate gift, and getting the best price can be easily verified. Although you may have to factor in shipping costs for most products, the savings on both transportation costs and your sanity can outweigh these expenses.
3. Start Early: The earlier you can begin your holiday shopping, the better chance you have of avoiding the mall mayhem. See a great deal in August on an item you know your husband or wife would love? Grab it now and store it away. It may not be there come December. Post-holiday clearance sales are also a good way to get ready for the next holiday season, with many products at a lower price than they will see for the rest of the year.
4. Relax: Take a few deep breaths and leave work or home stress behind before heading off to the mall. Leave plenty of time to deal with traffic and parking problems. And, if possible, leave the kids at home or with a relative for one less distraction while shopping. Becoming angry or irritated will only make the shopping experience worse. Get in the holiday spirit, and think of all the happy faces and smiles you will see once the shopping is over!

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What do you think?

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The first step in learning to keep your credit cards at arm’s length is to simply leave them at home. Physically take them out of your purse or wallet and put them in a safe location. This will force you to use cash or checks for any expenses, and makes it less likely for you to make non-essential or “impulse” purchases.

The next step is a bit more drastic. Cut up your credit cards. This will make it impossible to use them for everyday purchases. In addition to not having the option of actually using the cards, this process has a psychological affect as well. You are committing to not accruing any additional credit card debt, and the chopped up chunks of plastic mean you aren’t kidding around.

A final step in keeping credit cards at bay is to put a freeze on your credit reports. For around $10 each, most major credit bureaus will “lock” your credit rating. This will make it impossible for creditors to issue you any additional lines of credit because they will not be able to look at your credit report, instantly disqualifying you.

Drastic measures? Yes. But difficult times call for difficult choices. Make a conscious effort today to stop using your credit cards and you will be one step closer to a financially secure tomorrow.

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Nationwide unemployment levels are currently approaching 10%, the highest levels seen since the economic downturn of the early 1980’s. The majority of Americans facing unemployment will turn to Unemployment Insurance (UI) in order to stay afloat while they pursue alternative employment opportunities.

In general, the Federal-State Unemployment Insurance Program provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined under State law), and meet other eligibility requirements.

Eligibility

1. You must meet State requirements for wages earned or time worked during an established period of time referred to as a “base period”. (In most States, this is usually the first four out of the last five completed calendar quarters prior to the time that your claim is filed.)
2. You must be determined to be unemployed through no fault of your own (determined under State law), and meet other eligibility requirements of State law.

Filing a Claim

You should contact your state’s Unemployment Insurance agency as soon as possible after becoming unemployed. In some States, you can now file a claim by telephone or over the Internet.  When you file a claim, you will be asked for certain information, such as addresses and dates of your former employment. To make sure your claim is not delayed, be sure to give complete and correct information.

Generally, you should file your claim with the State where you worked. If you worked in a State other than the one where you now live, or if you worked in multiple states, the State UI agency where you now live can provide information about how to file your claim with other States.

It takes about two to three weeks after you file your claim to receive your first benefit check. Some States require a one-week waiting period; therefore, the second week claimed is the first week of payment.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

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·     Don’t take a vacation you know you can’t afford. That warning may seem obvious enough, but it’s amazing how many people blithely commit themselves to a trip or a destination that’s going to end up clobbering them in the wallet. Even worse, many pay for their expenses with a credit-card cash advance—then, months or even years after that vacation is only a dim memory, they’re still repaying that advance at exorbitant interest rates.

·     Don’t be so smitten with your destination that you overlook how you’ll get there. The economy resort that looks like a pretty good deal may not be quite so good if your airfare ends up costing more than the accommodations. A vacation spot you can drive to may not be quite so exotic, but it could spare you from a major dent in your bank account.

·     Think about roughing it in the great outdoors. Do you really need the fancy amenities of a costly hotel? Instead, stay at a campground for as little as $20 per night. Most campgrounds offer all the basics: electricity, bathrooms, and showers. And the kids will love it! (Well, they might complain about the lack of a TV unless you bring one along.)

·     Consider a motel as a lodging alternative. If camping out isn’t to your taste, check out some motels near your destination. You should be able to find at least one with a weekly rate—and after all, why spend a big chunk of your vacation cash on a place to sleep? Save it for the fun activities you’ll be enjoying while you’re awake.

·     Don’t eat every meal at a restaurant. Eating at restaurants is convenient, but it can really add up. Try to vary the Denny’s routine with some home cooking. If you’re going to camp out, find out if your campground has a grill. If you’ve decided to stay at a motel, look for one with a kitchenette—or at least a microwave and a refrigerator.

·     Try not to overload your days. It’s natural to want to see and do it all, but trying to cram too much into every day can lead to exhaustion. Better to start with your top-of-the-list places and events, then move on to a few others only if time permits and the kids aren’t too cranky by then.

So enjoy your well-deserved summer vacation. Come back refreshed and rested—but preferably not broke.

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1. Log in to your LinkedIn account.
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3. Find and select the “WordPress” application
4. Add http://www.dmbfinancial.com/blog/ as your blog feed

That’s it! Now the top few articles from the DMB Financial blog will post automatically to your account throughout the day, keeping you and all your admirers up to date with the latest financial, debt settlement, and industry news and commentary.

DMB Financial is a proud participant on

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But if you’ve been considering that course of action, you should be aware that bankruptcy is far from a panacea. Quite the contrary, the truth is that it’s accompanied by some substantial drawbacks.

— First of all, the filing will appear on your credit report for as much as ten years. That means every time you apply for credit, you’ll probably have to go through the same tedious routine of explaining the reasons that prompted the bankruptcy. And even then, your potential creditor may not be convinced. Obtaining credit in these harsh economic times can be a major challenge even for someone with a spotless credit record.

— Once you’ve filed for bankruptcy, you’re going to lose all of your property except what the law exempts. That isn’t going to make for happy days.

2005 Act Changed Everything

Despite these rather harsh penalties, many debtors used to find that, on balance, bankruptcy really did seem like a pretty good deal—until quite recently. Then, in October 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act, and suddenly the party was over.

The act requires that a debtor enter into consultations with an approved consumer credit counseling service—the idea being that people must pay their debts if at all possible, rather than resort to bankruptcy as a first course of action. If a debtor is still determined to file, he or she must first get certification from that credit counseling agency.

“But wait, there’s more!” as those late-night TV commercials like to tell us at ear-splitting volume. Provisions of the 2005 act also include the following:

— More documentation from the debtor is required before a filing will be accepted.

— Subsequent filings are actively discouraged.

— The waiting period between Chapter 7 bankruptcy filings has been extended from six to eight years.

— Final discharge of the obligation is withheld until the debtor completes a course in personal financial management.

Magic bullets just don’t exist. When you add up all the negatives, you can readily see that filing for bankruptcy is a long, arduous process littered with roadblocks at every turn. That’s why entering into a debt settlement program is a better choice for many, letting experienced debt negotiation specialists settle with their creditors for less than they owe. It’s certainly a viable alternative for peace of mind and a fresh start.

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