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Saving and Budgeting
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How Can I Make It Easier to Save?
By timestaff
Fortunately, saving no longer has to be purely an exercise in willpower (good thing, since the world is never so full of temptations to ... Read More » -
How Do I Set a Budget I Can Stick To?
By timestaff
There are three basic steps to setting a budget: identifying how your money is being spent; evaluating those expenses to see how they ... Read More » -
Why Do I Need an Emergency Fund, and How Much Do I Need?
By timestaff
Imagine that your roof starts to leak. Or your car breaks down. Or, worst of all, a pink slip lands on your desk. The credit cards in ... Read More » -
How Do I Pick a Bank?
By timestaff
You want to weigh a few different things when choosing a bank—namely, fees, interest rates and customer service. On checking ... Read More » -
How Do I Determine My Net Worth?
By timestaff
Essentially, your net worth is the value of what you own, minus what you owe. Or, as a formula: assets – liabilities = net worth ... Read More »
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Managing Credit and Debt
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What Kinds of Errors Should I Look for on My Credit Report?
By timestaff
Those credit bureaus that create your credit report aren’t infallible. In fact, one in five participants in a recent study by the ... Read More » -
How Can I Dispute Errors on My Credit Report?
By timestaff
Find a mistake in your credit report? You’ll want to contact the bureaus, stat. The bureaus are required to ... Read More » -
What Is My Credit Score, and How Is It Calculated?
By timestaff
While your credit reports are simply a track record of your payment history—no judgments—your credit score is more akin to a ... Read More » -
How Can I Improve My Credit Score?
By timestaff
Getting errors in your credit report fixed can give you the most immediate—and, potentially, significant—score boost. After ... Read More » -
How Do I Pick a Credit Card?
By timestaff
Like choosing a new suit, picking the right credit card is all about knowing your personal style. “Be really honest with yourself ... Read More » -
Should I Save or Pay Off Debt?
By timestaff
Most of us have way more financial goals than cash to spare. So deciding what to do with an extra chunk of change can be a tough choice. ... Read More » -
Which Debts Should I Pay Off First?
By timestaff
Cut down the credit card or ditch the student loan? Knock off the home equity line or get a jump on the car loan? Paying off money you ... Read More » -
Should I Try to Pay Off My Mortgage More Quickly?
By timestaff
It’s hard to imagine anything more satisfying that writing that last check to your bank and owning your home free and clear. For ... Read More » -
How Do I Get Rid of My Credit Card Debt?
By timestaff
Step 1: Figure out what you owe. Gather your credit card statements and make a list of all the balances and interest rates for each. ... Read More » -
Should I Borrow Against My 401(k) or House to Pay Off My Credit Cards?
By timestaff
If you’re saddled with a lot of high-interest credit-card debt, you might be tempted to pay it off quickly by borrowing from your ... Read More » -
I Am Unable to Pay My Debts. What Can I Do?
By timestaff
The worst thing you can do is hide. “The longer you wait, the more difficult the problem will be to resolve,” says Gail ... Read More » -
How Do I Deal With Debt Collectors?
By timestaff
The phone rings, and someone tells you that you need to repay an old department store bill – right now. Don’t panic: while ... Read More » -
Should I File for Bankruptcy?
By timestaff
If you are being hounded by debt collectors, don’t know of any realistic way that you can pay back or negotiate debts, and expect ... Read More »
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Investing
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How Do I Make Money Investing?
By timestaff
An investment makes money in one of two ways: By paying out income, or by increasing in value to other investors. Income comes in the ... Read More » -
What Is a Stock?
By timestaff
A stock is simply a small piece of a company. A “public” company is one that has issued shares by selling them to the ... Read More » -
How Does the Stock Market Work?
By timestaff
A stock market is where investors meet to buy and sell shares. Markets used to be literal places—they were trading floors in New ... Read More » -
What Is a Bond?
By timestaff
When you purchase a bond, you effectively are lending a company or a government money. The bond issuer is the borrower. It agrees to pay ... Read More » -
What Is a Mutual Fund?
By timestaff
A mutual fund is a simple way to invest in a diversified portfolio. Funds pool the money of many investors, and then a manager chooses ... Read More » -
What Is an Index Fund?
By timestaff
An index fund does not pick and choose its investments, but instead holds all of the stocks or bonds on an index. So what’s an ... Read More » -
What Is an Exchange-Traded Fund, or ETF?
By timestaff
There’s a lot of hype around exchange-traded funds (ETFs) as a new, improved way to invest. In fact, they aren’t all that ... Read More » -
How Much Should I Hold in Company Stock?
By timestaff
You may receive stock options or shares of restricted stocks as a part of your pay package. Good for you! Just don’t allow your ... Read More » -
How Do I Know If I Should Buy a Stock?
By timestaff
The most important thing to understand about picking stocks is this: If you are buying a stock, someone else is selling it. Whatever ... Read More » -
How Do I Choose a Mutual Fund?
By timestaff
Mutual fund ads, which often tout a fund’s past performance, always include this bit of fine print: “Past performance is no ... Read More » -
Should I Invest in Stocks or in a Stock Mutual Fund?
By timestaff
Most investors should use funds rather than individual stocks. Smart stock investing takes time and intensive research. It also requires ... Read More » -
Should I Invest in Bonds or in a Bond Mutual Fund?
By timestaff
Bond funds are a fine choice for most investors, but individual bonds have one advantage funds can’t match. As with stock mutual ... Read More » -
What Is the Right Mix of Stocks and Bonds for Me?
By timestaff
Here is an imperfect but workable rule of thumb: If you are investing mainly for retirement, you should “own your age” in ... Read More » -
How Many Funds Do I Need?
By timestaff
The short answer is one. Or three. You can buy just one fund if you can settle for a preset mix of stocks and bonds. Balanced funds, ... Read More » -
How Often Should I Check on My Retirement Investments?
By timestaff
Once a year is plenty. The priority should be on “rebalancing” your mix of stocks and bonds (known as your “asset ... Read More »
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Health Care
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Paying Taxes
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What's FICA?
By timestaff
FICA is another kind of tax you’ll see taken out of your paycheck—wah! wah!—in addition to income taxes. Named for the ... Read More » -
What Is the Alternative Minimum Tax and What Can I Do to Avoid It?
By timestaff
Oh the dreaded AMT! The alternative minimum tax was designed to prevent wealthy taxpayers from using loopholes to avoid paying their ... Read More » -
How Do I Fill Out a W-4?
By timestaff
Very carefully! This document—which your employer will ask you to fill out when you start a new job—indicates to the company ... Read More » -
What Is the Difference Between a Tax Deduction and a Tax Credit?
By timestaff
What’s the difference between a tax deduction and a tax credit? Good question. The way these two words are thrown around, many ... Read More » -
How Can I Reduce My Tax Bill?
By timestaff
Aside from earning less – which probably isn’t a great alternative – the best way to lower your tax bill is to make ... Read More » -
How Do I Know If It Makes Sense to Itemize?
By timestaff
Start by looking at your largest expenses that qualify as itemized tax deductions — for most people that’s mortgage ... Read More » -
What Expenses Can I Write Off If I Am Self-Employed?
By timestaff
In addition to the same deductions taken by folks who are employed by others, you can also deduct most expenses related to doing your ... Read More » -
How Do I Avoid an Audit?
By timestaff
First, a reality check: Only about 1% of tax returns get flagged by the IRS. Those who have particularly high-income—especially if ... Read More » -
Do I Need an Accountant to Do My Taxes?
By timestaff
If your situation is pretty simple—you don’t have multiple sources of income, significant capital gains from investments, a ... Read More » -
What If I Need More Time to File My Taxes?
By timestaff
Procrastinators have an out if they need more time to file taxes, but it’s not necessarily a free pass. You can get an automatic ... Read More » -
What If I Cannot Pay What Taxes I Owe?
By timestaff
At the very least, file your tax return and pay as much as you can. That way you’ll at least avoid failure-to-file penalties of up ... Read More » -
What Tax Records Do I Need to Keep and for How Long?
By timestaff
Hold onto actual tax returns indefinitely. They don’t take up a lot of space and can be stored electronically. Ditto for important ... Read More »
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Buying a House
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What Should I Do Before I Buy a Home?
By timestaff
Before you even think about hitting open houses, the first thing to do is get your finances in order. Six to 12 months before you start ... Read More » -
What Are the Steps in a Home Purchase?
By timestaff
Once your finances are in order, start the process by making a wish list of things you want in your new home and neighborhood. How much ... Read More » -
How Much House Can I Afford?
By timestaff
Start with this guideline: your target home should cost no more than 2.5 times your gross annual salary. For a $100,000 salary, ... Read More » -
Do I Need a Real Estate Agent to Buy a Home?
By timestaff
You bet. Navigating a real estate purchase is tricky business. The web has made it possible to do a lot of the legwork yourself, but ... Read More » -
How Do I Choose the Right Real Estate Agent?
By timestaff
Finding the right agent takes balancing credentials and chemistry. You want to choose someone you like—after all, you might spend ... Read More » -
How Do I Shop for a House?
By timestaff
The vast majority of buyers, nearly 90%, start the search for a new home online. The major listings websites allow you to search by ... Read More » -
Should I Go to an Open House?
By timestaff
There are a few good reasons to attend an open house, as nearly half of buyers do. The biggest benefit is that you can learn from the ... Read More » -
Should I Buy a Short Sale or Foreclosure?
By timestaff
Only if you’ve got plenty of time and a strong stomach. Short sales and foreclosures are not for the faint of heart. On the ... Read More » -
How Do I Negotiate the Best Price on a New Home?
By timestaff
The kind of market you’re in will dictate your negotiating strategy. Be aware that in most places, the days of lowball bids that ... Read More » -
Should I Get a Home Inspection?
By timestaff
Absolutely. You’re not just buying that beautiful master suite or stone-lined fireplace, “you’re also buying any ... Read More » -
What Mortgage Is Right for Me?
By timestaff
If you’re like most buyers, you’ll choose a 30-year loan, with either a fixed or adjustable interest rate. As the name ... Read More » -
How Do I Get the Best Rate on a Mortgage?
By timestaff
Like buying any product, getting the best mortgage rate requires doing some homework. But it’s not as simple as shopping for a ... Read More » -
How Does an Escrow Account Work?
By timestaff
An escrow account is essentially a holding tank. During a real estate transaction, the escrow officer—usually a lawyer or title ... Read More » -
How Much Will My Closing Costs Be?
By timestaff
Closing fees average around 2% of the purchase price—on a $200,000 home, that’s $4,000—but they can go as high as 5%. ... Read More »
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Selling a House
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How Do I Make My Home Attractive to Buyers?
By Sinash Shajahan
The most important thing you can do to speed a sale is to price your home right. After all, buyers have access to the same market data ... Read More » -
What Renovations Will Pay Off When I Sell?
By Sinash Shajahan
The two rooms that really sell houses are the kitchen and master bathroom. If your home needs upgrading, focus your dollars here. Before ... Read More » -
How Do I Set an Asking Price for My Home?
By Sinash Shajahan
To arrive at the right listing price, start by researching the competition. That’s where an agent can help. He or she will prepare ... Read More » -
What Closing Costs Do Sellers Pay?
By Sinash Shajahan
Once you’ve paid off your mortgage and any other loans on the property, the biggest chunk of change home sellers pay at closing is ... Read More » -
Should I Buy a New House Before Selling My Current Home?
By Sinash Shajahan
Juggling the sale of one home with the search for another is tricky. List your home too soon, and you risk being homeless. Wait too ... Read More » -
Will I Pay Income Taxes on the Sale of My Home?
By Sinash Shajahan
Whether you’ll pay taxes—and if so, how much—depends on how long you’ve been in your home. If you’ve lived ... Read More »
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Investing in Real Estate
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What Returns Will I Make on an Investment House?
By Sinash Shajahan
Big Wall Street-backed firms that own thousands of rental properties aim for a 5%-7% return on their homes. Individual investors, who ... Read More » -
Can I Get a Loan for a Real Estate Investment?
By Sinash Shajahan
Cash will get you the best deal on properties, but here’s a trick favored by experienced investors. Use cash to buy, then within ... Read More »
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Saving for College
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How Much Do I Need to Save for College?
By Sinash Shajahan
When it comes to saving for college, every little bit helps. Each dollar you save is one dollar you won’t have to borrow or rely ... Read More » -
How To Choose the Best College Savings Plan
By Sinash Shajahan
While you can certainly sock away money for college in a piggy bank or savings account, there are better ways to save. The best option ... Read More » -
How Much Should I Save for College vs. Retirement?
By Sinash Shajahan
Most advisers tell parents to prioritize retirement savings because you and your child can borrow for college, while nobody lends for ... Read More » -
What's the Best 529 Plan for Me?
By Sinash Shajahan
Use this cheat sheet to help you pick the best 529 college savings plan for your family: Step one: See if you’re entitled to a tax ... Read More » -
How Should I Invest My Child's 529?
By Sinash Shajahan
College savings plans typically offer pre-mixed portfolios that you can select based on the date your child is likely to start college. ... Read More » -
How Do College Savings Affect My Financial Aid Prospects?
By Sinash Shajahan
For the vast majority of American families, college savings won’t reduce financial aid by a single penny. First of all, savings do ... Read More » -
Does It Pay to Save for College?
By Sinash Shajahan
The oft-repeated complaint that it doesn’t pay to save for college simply isn’t true. It pays big-time. As Kal Chany, author ... Read More »
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Dealing with ID Theft
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What Should I Do If I Lost My Smartphone?
By timestaff
The first call you need to make—when you find a phone, that is!—is to your wireless carrier. Report your phone missing and ... Read More » -
What Should I Do If I Have Been a Victim of a Data Breach?
By timestaff
The actions you’ll need to take will depend on the type of data compromised. If affected, you should receive a letter—via ... Read More » -
How Do I Fix a Suspicious Charge on My Credit or Debit Card?
By timestaff
Don’t recognize that $500 charge on your statement for Simon’s House of Silly Putty? Call your bank or card issuer ASAP to ... Read More » -
What Should I Do If I Have Been the Victim of Identity Theft?
By timestaff
Identity theft occurs when someone obtains your personal and/or financial information and uses it to assume your identity to make ... Read More » -
How Can I Protect Myself From ID Theft?
By timestaff
You can’t protect yourself completely from ID theft, but there are several tricks you can use to avoid being an easy target: ... Read More » -
Do I Need Identity Theft Insurance?
By timestaff
“I’d be very reluctant to pay for insurance,” says Neal O’Farrell, executive director of The Identity Theft ... Read More » -
Should I Pay for Credit Monitoring?
By timestaff
Credit monitoring and identity theft protection services—which run $120 to $200 a year—are definitely not necessary. Most of ... Read More » -
How Do I Create a Really Secure Password That I Can Actually Remember?
By timestaff
Forget using the word “password,” for one thing. Or any other single name or word from the dictionary. Or anything with ... Read More »
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Buying a Car
