Ready to test your knowledge? You’ll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you’ve completed answering all ten questions, click “Grade Me!” at the end of the quiz to see how you did.

Reducing Your Spending

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Ready to test your knowledge? You’ll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you’ve completed answering all ten questions, click “Grade Me!” at the end of the quiz to see how you did.

Understanding Your Paycheck

View Resource Understanding Your Paycheck
Ready to test your knowledge? You’ll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you’ve completed answering all ten questions, click “Grade Me!” at the end of the quiz to see how you did.

Loan Basics

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Ready to test your knowledge? You’ll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you’ve completed answering all ten questions, click “Grade Me!” at the end of the quiz to see how you did.

Managing Debt

View Resource Managing Debt
Ready to test your knowledge? You’ll have ten multiple choice questions to answer. Click on each question to reveal the question and multiple choice answers. After you’ve completed answering all ten questions, click “Grade Me!” at the end of the quiz to see how you did.

Budgeting Basics

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Direct marketing is still effective. The hype and effectiveness of online contact get the most buzz, but it simply can’t replace directly reaching out to customers and prospects with phone calls and mail. One big advantage direct marketing has is how it allows you to target your customers with great accuracy, making it a very cost-effective method of advertising. Introduction to Direct Marketing Direct marketing is any unsolicited contact that you make with prospects or existing customers to makes sales, generate interest or simply raise awareness of your products or services. The most common methods include direct mail, handouts, and telemarketing. Some advertisers include direct response mobile marketing, print ads, free-standing inserts, television and radio in the list too. Many businesses still use direct marketing to grow their customer base, and as their major source of sales. To give you an idea whether it can help your advertising efforts, here is an overview of the basic components of direct marketing. Database Marketing Database marketing involves selling to customers or potential customers based on significant data profiles. Having a great deal of information on your targets makes it easier, and cheaper, to sell to them. Another advantage is that you might have specific information about what they are interested in, what their needs and concerns are. Over time, you have accumulated helpful data about that can be used effectively in your direct marketing efforts. Among these include: When you effectively use database marketing, you can sort and filter your customers for specific types of mailings and contact. You can also build data profiles of customers that buy from you and then use those profiles to identify sales prospects that share the profile’s characteristics. It is essential that you keep your list up to date, cleaning it out by removing those individuals that are no longer active and by making appropriate changes to phone numbers and addresses. A list that is out of date is virtually useless because you waste money sending misdirected offers. Direct Mail Direct mail is the most common form of contact. Detractors often refer to it as junk mail, but that name does it a great disservice. It works well for B2B and B2C marketing with the right content and research. Most mailings include a letter and inserts, like brochures about the product, order forms and often a prepaid envelope. A complete package like this gets far more response that a simple letter. Even a quality letter and set of enclosures will not get a good response if your email list is not high caliber. Your database is the first place to start. Alternatively, check with reputable companies that offer mailing lists. The Direct Marketing Association, or DMA, is a good place to check for sources of lists. Telemarketing Though telemarketers are sometimes considered verbal spam, they can be a highly effective tool for your business. Speaking directly to prospects offers several advantages, including: As a business owner, you can use telemarketing in B2B contacts with great effectiveness. It has far less stigma in business than it does at home. You can use telemarketing in several ways: Legal Issues and Best Practices Unsolicited contact with people and businesses and using their contact and personal information is subject to legal and regulatory considerations. For example, if a contact opts out from receiving unsolicited phone calls or direct mail, it is unlawful to contact them this way again. The Direct Marketing Association offers a wealth of resources around legal considerations for direct marketing. Direct marketing is an effective tool for many small businesses. It is a way to contact your prospects and customer base, gain information and get sales.

Direct Marketing Basics

View Resource Direct Marketing Basics
Budgets are a tricky subject for a lot of us. On the one hand, they can be difficult to follow, especially if you set a budget that’s too strict. But on the other hand, they really are the only practical way to get control over your spending to make sure you’re using your money the way you want to. These three key steps will go a long way in helping you develop a practical, workable budget:
  1. Keep track of how you save and spend.
    One of the best and easiest ways to track your spending is by using a software program. With just a few clicks, you can review everything you’ve earned and spent. The more you use the program and the more transactions you enter, the more updated information you’ll have at your fingertips to review later. Of course, if you prefer to track your spending manually, there’s nothing wrong with saving receipts and writing down your spending and savings on paper.

  2. Write down your savings goals.
    Once you’ve started tracking how much you spend and how much you’re saving, it’s time to figure out your financial goals.


    • Do you want to buy a home in X number of years?
    • Do you want to own a new car by the end of the year?
    • Are there home improvements you’d like to have done soon?
    • Do you want to set money aside each month for you children’s education?
    • Are you putting enough money into retirement investments?
    While you’re thinking about your goals, you should also factor in unexpected expenses that could come up. Create an emergency fund for things like a major medical issue or unexpected car problems.
  3. Compare your spending to your goals.

    4. It’s a good idea to monitor your budget on a monthly basis. If you have a spouse or significant other, work on this step together. Are you on track with the financial goals you’ve established? Do you need to make more cuts? Were things purchased that were not budgeted for?
Sitting down to discuss your spending habits and goals is the best way to keep your budget top-of-mind. You may find that your budget can use some adjustment — it may be too stringent in one area and not strict enough in another. It’s helpful to talk about modifying the budget where needed and committing to making it work. Taking control of your finances to create a budget may seem a little intimidating at first, but by taking things one step at a time, you’ll start to eliminate financial worries and have more enjoyment in your life.

How to Create a Useful Budget

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If you plan on collecting Social Security benefits at some point, it’s important to know about a few of the program’s details you may not be aware of – details that can negatively impact your retirement savings if you’re not careful. Here are a few potential Social Security traps to look out for so you can maximize the benefits you worked hard to earn: Required Minimum Distribution (RMD) If you have tax-deferred retirement accounts, like traditional IRAs and 401(k)s, RMD is the minimum amount you must withdraw from these accounts each year after you reach the age of 70 1/2. These distributions are treated as ordinary income, and if you don’t take the required distributions in any year, you may have to pay a 50% excise tax on the amount not distributed. Not all retirees are eligible for Social Security It’s surprising to most people to learn that not every type of work counts towards earning Social Security benefits. Make sure to find out whether your employer takes part in Social Security or if your position qualifies you for it. It’s important to know exactly where your retirement benefits will be coming from before making any financial decisions. Taxes on your Social Security benefits When your earnings exceed a certain level, a portion of your Social Security benefits may be taxable – up to 85% of your benefits, in fact! Be sure to make note of any income sources that are normally tax-exempt, such as municipal bonds – those will be factored into your total income when the IRS calculates any tax on your Social Security benefits. You should also be aware that when converting a Traditional IRA to a Roth IRA you will have to pay income tax on the conversion. Benefits may be lowered while working Limits may be placed on your Social Security benefits if you’re earning more than a specified amount of separate income. You’re allowed to collect Social Security and earn from your employer at the same time, but there is a limit where your benefits will be reduced by $1 for every $2 you earn above the allowable amount. So, if you’re planning to work past the age of 62 and you could potentially earn more than the maximum allowable amount, consider putting off collecting Social Security benefits until you begin working less or not at all

4 Ways to Avoid Social Security Pitfalls

View Resource 4 Ways to Avoid Social Security Pitfalls
When it comes to building your home, the right financing is the real foundation that everything else will be built upon. First Federal Lakewood can help you with this all-important first step by providing the expertise to help you navigate the world of mortgage loan options. To get you started, we’ve put together this list of five important steps to help ensure a successful start. Step 1 – Find a lender You may be tempted to stick with your current bank out of habit. But a smarter move is to do some research. Find a Mortgage Loan Originator who is well-versed in construction lending and ask him or her how many new construction loans they’ve personally handled. Foster a relationship with them. Ask plenty of questions. And remember that some banks take a “one-size-fits-all” approach to mortgage lending, failing to tailor the loan to your build. Every new construction loan should be unique to the individual buyer’s needs. Step 2 – Get pre-qualified Many people get too swept up in the exciting details they’ve seen in a model home. They begin a conversation with a builder before they’re even pre-qualified for a loan. By speaking with a lender first, you’ll know what you can actually afford based on your debt-to-income ratio, among other criteria, so you can consider a new home that makes sense for you financially. Getting pre-qualified also tells a builder that you are a serious buyer, not just a shopper. Step 3 – Ask for numbers in writing This is best way to really assess the affordability of a home build. Ask your builder for a detailed breakout of the home’s final cost, including the costs for change requests, upgrades and fees. You can then take those numbers to your lender to calculate your down payment, monthly payments, rates and closing costs. Having the figures in writing not only binds the lender and builder to those numbers, it also allows you to easily compare loans and find the best fit for you. Step 4 – Find loan products that fit Every mortgage has its share of options and variables, but with new construction there’s even more to consider. One important factor is the build time, typically four to six months, with custom properties taking even longer. Will you be able to make your current house payments while paying for the new build? This is an opportunity to ask your Mortgage Loan Originator about the bank’s unique loan options, such as a Bridge Loan. This loan features special rates and terms that enable you to comfortably stay in your current home while your new one is being built. It can help remove the risk and add a little more convenience. Step 5 – Rely on your relationship with your lender Your relationship with your lender shouldn’t end after you secure a loan. Early on, your bank should walk you through what to expect at every step. And throughout the process, they should be available to help you navigate each of those steps. Remember, from helping you work with the builder to explaining what needs to happen after you close on the loan, your lender is there to help.

5 Keys to Borrowing to Build Your Dream Home

View Resource 5 Keys to Borrowing to Build Your Dream Home
If you’re a DIY-er, Springtime’s arrival is the perfect green light to start a few home improvement projects. If you don’t already have a warm weather to-do list for this year, here are a few key areas of the home to consider sprucing up. Gutters and Downspouts Keeping gutters clean and downspouts in good working order can save you thousands of dollars in damage caused by excess water at your home’s foundation. Replace any damaged gutter or downspout sections, and be sure to clean your gutters of leaves and other debris that could keep rainwater from flowing freely away from your home. Consider adding gutter covers to help keep debris from collecting between cleanings. If your downspouts empty onto your yard rather than directly into the sewer system, use adequate downspout extenders to direct water away from your home – they should reach at least five feet into your yard. Windows and Doors Did your windows feel drafty this winter? It could be time for a replacement. Older, single-pane windows are especially good candidates for an upgrade. Today’s energy-efficient double-pane windows can help you save on heating and cooling bills, keep your home’s indoor temperature consistent year-round, and help protect items in your home from fading in the sun. On the inside, updating your blinds or shades can add a fresh pop of color to your home without having to paint. To enhance your home’s curb appeal, a new, energy-efficient front door can provide an attractive focal point and help reduce energy costs at the same time. Options like decorative glass accents and sidelights let in natural light while adding style. If a new door isn’t in your plans, a fresh coat of paint will give your existing door an attractive, new look. Air Conditioning While most air conditioning work requires help from the pros, simple things like keeping the outdoor unit clean can increase efficiency. Use a garden hose to spray the cooling fins, coils and vents clean, and remove any debris or overgrown plants in contact with the unit. Clean your home’s ductwork, too. Remove register covers and use your vacuum cleaner’s hose to get rid of any dust bunnies and cobwebs that have collected. You can also vacuum inside the ducts as far as you can reach. For a full duct cleaning you’ll need to call in a professional cleaning service.

Springtime is a Great Time For Home Improvement

View Resource Springtime is a Great Time For Home Improvement